COMPARISON OF ENVIRONMENTAL QUALITY-INDUCED DEMAND SHIFTS USING TIME-SERIES AND CROSS-SECTION DATA

Abstract

Almost all applications of the Travel-Cost-Method demand function which include site quality variable(s) are multisite models. The results of this study serve as a note of warning that using the demand equation derived from multisite cross-sectional data to perform a benefit-cost analysis of changes in quality at a single site may not accurately predict the resulting change in the number of trips to that site. In this situation, estimates of the benefits of quality improvements may be unreliable.Demand and Price Analysis, Environmental Economics and Policy, Resource /Energy Economics and Policy,