Abstract |
The travel-cost method used to value extra-market benefits implicitly assumes that all users have identical tastes. An alternative approach is suggested which uses a photo-choice game to yield estimates of users' preferences in valuating these benefits. Data showing the utility of this approach is collected from 189 reservoir and adjacent resource users in the Cascade Mountains of Oregon and includes estimates of tastes and socio-economic characteristics. Tastes were measured as the willingness of user to expend additional time or money using one of the choices in the photo-choice game to obtain cardinal estimates of preferences. Modified demand functions were estimated for ten activities with distance as a proxy for price, and tastes as the independent variables. Benefits under this method equal the area under the demand curve. Alternatively, it is suggested that benefits from each of these activities can be determined using indifference curve analysis. Utility maps were generated using the Ramsey method of utility estimation. Demand curves were generated from the indifference curve and benefits calculated. Finally, indifference curves are used to estimate option demand. Option demand curves can be used to value benefits which can arise from potential future activities. (Author) |