The Opportunity Cost Of Travel Time In Recreational Fishing Demand Analysis: A South African Case Study

The value individuals place on travel time to recreation sites constitutes an important component of the total travel cost variable in recreational demand analysis. Failure to include the opportunity cost of travel time in travel cost models will lead to an underestimate of the demand and benefit va...

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Bibliographic Details
Published in:Tydskrif vir studies in ekonomie en ekonometrie 2011-04, Vol.35 (1), p.45-58
Main Author: du Preez, M
Format: Article
Language:English
Subjects:
Nelson Mandela Metropolitan University
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Summary:The value individuals place on travel time to recreation sites constitutes an important component of the total travel cost variable in recreational demand analysis. Failure to include the opportunity cost of travel time in travel cost models will lead to an underestimate of the demand and benefit valuation of recreation sites. Using a count data model, this paper calculates the opportunity cost of travel time by inferring it within a recreational fishing demand model estimated. The paper shows that the estimated opportunity cost of travel time for recreational fishing in South Africa is 28 percent of the wage rate or R118,72 per hour. This is somewhat less than the fraction of the wage rate, namely 33 percent, most often employed in TCM studies.
ISSN:0379-6205
2693-5198
DOI:10.1080/10800379.2011.12097215