| Abstract: |
In this paper we present results from a study of recreation demand of southern
North Carolina beaches. We combine revealed preference and stated preference
data in order to estimate the changes in recreation demand that might occur
with beach nourishment and parking improvements necessary to satisfy the
requirements for US Army Corps of Engineers cost-share. We illustrate the
numerous ways that hypothetical bias in contingent behavior data can lead to
increases in the estimates of the economic benefits of recreation and
recreation quality improvement. Hypothetical bias affects the number of trips
and slope coefficients. Hypothetical bias does not affect elasticity or
consumer surplus per trip estimates. When the product of trips and consumer
surplus per trip is taken to estimate consumer surplus per season,
hypothetical bias leads to upwardly biased seasonal consumer surplus
estimates. These results suggest that stated preference recreation demand
data, in isolation, is suitable for estimation of consumer surplus per trip
but not consumer surplus per season. |