Benefits of Improved Water Quality: A Discrete Choice Analysis of Freshwater Recreational Demands

Discrete choice methodologies are increasingly being used to estimate multiple-sites recreational demands and evaluate the welfare effects of alternative environmental policies aimed at water quality improvements. In this study the authors use 1985 data on Indiana anglers to estimate a multinomial l...

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Bibliographic Details
Published in:Environment and planning. A 1994-10, Vol.26 (10), p.1625-1638
Main Authors: Tay, R S, McCarthy, P S
Format: Article
Language:English
Subjects:
Bgi / Prodig
Decision theory
Environment
Human geography
Leisure time
Management of resources and environment
Political and economic geography
Recreation
Water quality
Water resources
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Summary:Discrete choice methodologies are increasingly being used to estimate multiple-sites recreational demands and evaluate the welfare effects of alternative environmental policies aimed at water quality improvements. In this study the authors use 1985 data on Indiana anglers to estimate a multinomial logit model of destination choice and compute the benefits of alternative water quality improvements. In general, the results indicate that anglers are reasonably sensitive to changes in water quality. The per-trip welfare gains from a 1% reduction in various pollutants range from 4.9 to 25.3 cents and a similar reduction in all pollutants increases per-trip welfare by 64.5 cents.
ISSN:0308-518X
1472-3409
DOI:10.1068/a261625