The Convergence Of Welfare Estimates Employing Travel Cost And Contingent Valuation Method: Evidence From New York State Anglers

Abstract

Environmental goods are generally not exchangeable in the market, and, even when they are, the market price does not fully reflect recreation value. As a result, recreational fishing values are generally estimated using non-market valuation methods, which can be categorized into two different approaches: stated preference and revealed preference approaches. Numerous studies employ either the travel cost method (TCM), which is the most popular approach of revealed preference method, or the contingent valuation method (CVM), a representative of state preference approach, or both methods. However, none of these studies have compared openended CVM with a TCM employing a random utility model (RUM). The 1988 New York State Angler Survey includes half of the survey containing open-ended CVM questions and angler visitation data, which makes the estimates using both methods and the comparison available. A nested logit TCM is applied in this study and gives an estimate of recreational fishing value ranges from $23.11 to $25.37 per day. The mean willingness to pay (WTP) estimated under open-ended CVM is $24.96, showing statistically convergence to the estimate derived from TCM, which in return, providing the evidence of convergent validity for both methods. iii