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‘A travel cost analysis of the value of Carnarvon Gorge National Park for recreational use’: comment

‘A travel cost analysis of the value of Carnarvon Gorge National Park for recreational use’: comment The Australian Journal of Agricultural and Resource Economics, 42:3, pp. 263^265 `A travel cost analysis of the value of Carnarvon Gorge National Park for recreational use': comment John Kennedy* Beal (1995) has estimated the consumer surplus for use value of visits to the Carnarvon Gorge National Park at A$2.4 million per year, or at a capital value of A$40 million assuming a real rate of discount of 6 per cent per year. The purpose of this article is to point out that there are two sources of error which make this estimate at least four times too large. The ¢rst and most signi¢cant error in Beal (1995) is made in the last stage of the calculations. On p. 302 the inverse demand equations for camper and non-camper visitors are given as: P ˆ 62:53ÿ 0:004 Q (camping) …1† P ˆ 95:28ÿ 0:04 Q (non-camping) …2† where P is entry price per person, and Q is number of visits demanded. Beal continues (p. 302): These equations have been estimated in terms of visitors undertaking four-day trips. If the unit in which output is measured is changed to day equivalents so that demand may be understood in terms of the more http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Australian Journal of Agricultural Resource Economics Wiley

‘A travel cost analysis of the value of Carnarvon Gorge National Park for recreational use’: comment

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References (1)

Publisher
Wiley
Copyright
Copyright © 1998 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1364-985X
eISSN
1467-8489
DOI
10.1111/1467-8489.00050
Publisher site
See Article on Publisher Site

Abstract

The Australian Journal of Agricultural and Resource Economics, 42:3, pp. 263^265 `A travel cost analysis of the value of Carnarvon Gorge National Park for recreational use': comment John Kennedy* Beal (1995) has estimated the consumer surplus for use value of visits to the Carnarvon Gorge National Park at A$2.4 million per year, or at a capital value of A$40 million assuming a real rate of discount of 6 per cent per year. The purpose of this article is to point out that there are two sources of error which make this estimate at least four times too large. The ¢rst and most signi¢cant error in Beal (1995) is made in the last stage of the calculations. On p. 302 the inverse demand equations for camper and non-camper visitors are given as: P ˆ 62:53ÿ 0:004 Q (camping) …1† P ˆ 95:28ÿ 0:04 Q (non-camping) …2† where P is entry price per person, and Q is number of visits demanded. Beal continues (p. 302): These equations have been estimated in terms of visitors undertaking four-day trips. If the unit in which output is measured is changed to day equivalents so that demand may be understood in terms of the more

Journal

The Australian Journal of Agricultural Resource Economics – Wiley

Published: Sep 1, 1998

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