Estimating Recreation Demand Function by Using Zero Truncated Poisson Distribution: A Case Study of Tehran Darband Site (Iran)
Journal Title: Journal of Empirical Economics - Year 2013, Vol 1, Issue 1
Abstract
It is not possible to value the parks, coastal regions and in general recreational sites by market methods and it is better to use the non market valuation methods. One of the methods which were used by the economists during recent years is Individual Travel Cost Approach. In this study, the researcher evaluates the visit demand function of that site after collecting the related questionnaires and then calculates the consumer’s surplus which is equal with the recreational value of this site. The main aim of this paper is to evaluate the recreational demand function by using the Individual Travel Cost Approach. After evaluating this function, it is possible to evaluate the recreational value of this place which is the 2nd aim of this paper. One of the limitations of Individual Travel Cost Method is the dependant variable in this model; therefore, the other aim of this paper is the application of Zero Truncated Poisson Distribution for these studies in comparison with the normal model. Also in this paper, different rates were used in order to value the time opportunity cost. In order to evaluate the visit demand function, 385 questionnaires were distributed among the visitors of this site and after evaluating this function, recreational value in different models was evaluated. Finally, the recreational value in lieu of each visit, in lieu of each visitor and annual recreational value of that site in a determined year were equal 12.6- 35$, 82-228.6$ and 31-131.4$, respectively which show the great value of this place for the visitors.
Authors and Affiliations
Rahman Khoshakhlagh, Seyed Vahid Safaeifard, Seyedeh Nasim Mirahmadi Sharifi
Keywords
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