Aggregating Consumer Surplus Values in Travel Cost Modelling Using Spatial Microsimulation and GIS Techniques

John Cullinan (), Stephen Hynes and Cathal O’Donoghue
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John Cullinan: Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland
Cathal O’Donoghue: Rural Economy and Development Programme, Teagasc, Athenry, Co. Galway, Ireland
Authors registered in the RePEc Author Service: Cathal O'donoghue

No 807, Working Papers from Rural Economy and Development Programme,Teagasc

Abstract: We propose a multi-stage modelling approach for simultaneously estimating the total number and aggregate value of recreation-related visits to a small-scale community forest in the West of Ireland. Simulated spatially-referenced individuals from a spatial microsimulation model for Ireland (SMILE) who reside within the forest’s catchment area are identified using GIS techniques. A travel cost model corrected for truncation and endogenous stratification is estimated for a sample of visitors to the site and transferred across each individual in the simulated population, using SMILE and GIS-based network analysis to derive the appropriate values for the RHS variables. We predict each simulated individual’s demand for, and value of, visits to the site and sum over the population to derive aggregate visits and consumer surplus estimates. We also discuss how the approach can be used to facilitate benefit transfer of consumer surplus values in travel cost modelling.

Pages: 22 pages
Date: 2008
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