The Travel Cost Method : Background, Summary, Explanation and Discussion
Leslie Karasin
Background
What is the Travel Cost Method (TCM)?
Where does it come from ?
Who uses it ?
What are its alternatives ?
Summary
How does someone do a travel cost analysis ?
What are some particular concerns ?
Treatment of independent variables
Explanation
What do the products of a travel cost analysis tell us ?
Is there only one type of travel cost study ?
Discussion
Is the TCM a perfect system ?
Where can I look for more information ?
Background
What is the Travel Cost Method (TCM) ?
The TCM is a means of determining value figures for things which are generally not bought and sold, and therefore fall outside of the market’s pricing system. The non-market assets which it is most often applied to are ‘recreational resources which necessitate significant expenditure for their enjoyment.’[9, p. 93] This means that the TCM is often used to assess the value of parks, lakes, and similar public areas which host a good deal of recreational activity, and which are far enough away from many people to require users to drive or fly to the site.
The basic premise of the TCM is that, although the actual value of the recreational experience does not have a price tag, the costs incurred by individuals in travelling to the site can be used as surrogate prices. The weak complementarity of the goods required for travel to the site makes it possible estimate a demand curve for the site, and from it, a measure of the sites’ consumer surplus can be found. It is important to note that the consumer surplus figure is a measure of the user value of the site only, and does not necessarily measure the site’s environmental or intrinsic value.
Where does it come from ?
The idea for the TCM is attributed to Harold Hotelling, who proposed the basic notion of the method to a park service... [continues]
Leslie Karasin
Background
What is the Travel Cost Method (TCM)?
Where does it come from ?
Who uses it ?
What are its alternatives ?
Summary
How does someone do a travel cost analysis ?
What are some particular concerns ?
Treatment of independent variables
Explanation
What do the products of a travel cost analysis tell us ?
Is there only one type of travel cost study ?
Discussion
Is the TCM a perfect system ?
Where can I look for more information ?
Background
What is the Travel Cost Method (TCM) ?
The TCM is a means of determining value figures for things which are generally not bought and sold, and therefore fall outside of the market’s pricing system. The non-market assets which it is most often applied to are ‘recreational resources which necessitate significant expenditure for their enjoyment.’[9, p. 93] This means that the TCM is often used to assess the value of parks, lakes, and similar public areas which host a good deal of recreational activity, and which are far enough away from many people to require users to drive or fly to the site.
The basic premise of the TCM is that, although the actual value of the recreational experience does not have a price tag, the costs incurred by individuals in travelling to the site can be used as surrogate prices. The weak complementarity of the goods required for travel to the site makes it possible estimate a demand curve for the site, and from it, a measure of the sites’ consumer surplus can be found. It is important to note that the consumer surplus figure is a measure of the user value of the site only, and does not necessarily measure the site’s environmental or intrinsic value.
Where does it come from ?
The idea for the TCM is attributed to Harold Hotelling, who proposed the basic notion of the method to a park service... [continues]
Cite This Essay
- APA
-
(2010, 05). The Travel Cost Method : Background, Summary, Explanation and Discussion. StudyMode.com. Retrieved 05, 2010, from http://www.studymode.com/essays/The-Travel-Cost-Method-Background-321423.html
- MLA
-
"The Travel Cost Method : Background, Summary, Explanation and Discussion" StudyMode.com. 05 2010. 05 2010 <http://www.studymode.com/essays/The-Travel-Cost-Method-Background-321423.html>.
- CHICAGO
-
"The Travel Cost Method : Background, Summary, Explanation and Discussion." StudyMode.com. 05, 2010. Accessed 05, 2010. http://www.studymode.com/essays/The-Travel-Cost-Method-Background-321423.html.
