The travel cost method of economic valuation, travel cost analysis, or Clawson Method is a method of economic valuation used in cost benefit analysis to calculate the value of something that cannot be obtained through market prices (i.e. National Parks, Beaches, Ecosystems). The aim of the method is to calculate willingness to pay for a constant price facility.

Methodology

• A sample of visitors to the facility are surveyed.
• These visitors are split into “Zones” depending on their distance travelled to the facility.
• The average distance to the facility and the average travel cost to the facility from each zone are calculated.
• The Visit Rate from each zone is calculated.

ie) Visit Rate: The Number of Visitors from a given zone/The population of that zone

• The Visit Rate is regressed against Travel cost in order to create a Vist Rate Curve.

Visit Rate from given zone = f(Cost from given zone)

VR=a+b.C

• This curve can then be used to obtain estimates of Visit Rates given differing levels of total costs.
• This enables estimates of numbers of visitors from each zone to be made given differing level of facility price.
• The sum of the number of visitors from each zone can be plotted/regressed against these differing levels of facility price in order to create a demand curve for the facility.
• The area under this demand curve is the willingness to Pay for the facility which can be used as a valuation for CBA purposes.

Explanation

The travel cost method of economic valuation is a revealed preference method because it looks at actual human behavior to try to define the value people place on something.

According to Ecosystemvaluation.org “The basic premise of the travel cost method is that the time and travel cost expenses that people incur to visit a site represent the “price” of access to the site. Thus, peoples’ willingness to pay to visit the site can be estimated based on the number of trips that they make at different travel costs. This is analogous to estimating peoples’ willingness to pay for a marketed good based on the quantity demanded at different prices.”

External links

• [1] - Ecosystem Valuation.org

References

• Marine Accused of Firing Shotgun Was Defending Family Click here to visit FOXNews.com's NEW Crime Center. "I felt like the gun was pointed at me," he said. "I pushed my mom hard to the left. I dove."
• Bulgaria Visit Foxnews BULGARIABUSINESSGUIDE.COM Click here to visit FOXNews.com's Archaeology Center. Georgi Kitov, the team leader, said http://www.foxnews.com/story/0,2933,289489,00.html
• weenernation :: View topic - Chinese Man Drops Dead After 3-Day Click here to visit FOXNews.com's Video Gaming Center. The report did not say what the man, whose name was not given, was playing.The report said that about
• DoctorFu's Blog Click here to visit FOXNews.com's Video Gaming Center. In May, the Xbox 360 ranked No. 2 in unit sales behind Nintendo's Wii, but still beat out Sony's
• Hefner happy to have 'cleaned-up' Britney as Playboy centerfold FoxNews.com's Pop Tarts reports that Playboy boss Hugh Hefner didn't reject Britney Spears Visit my website for full links, other content, and more! ]]
• Rocky Mountain News: Web extra Visit FOXNews.com's Iraq Center for more in-depth coverage. Rear Adm. Mark Fox, a US military spokesman, said al-Badri had been among insurgents spotted by
• SCIENCE File Format: PDF/Adobe Acrobat - View as HTMLClick here to visit FOXNews.com's. Space Center. "The fact that we have found this. planet proves that a planet with a. small orbital distance can survive"
• Sorry this just hit my funnybone this morning - Addiction Community Click here to visit FOXNews.com's Natural Science Center. Gichuki Kabukuru of the Kenya Wildlife Service told the Telegraph that monkeys and baboons
• Kingwood Underground - the heart and soul of our Kingwood, Texas FOXNews.com's Liza Porteus and The Associated Press contributed to this report. Visit FOXNews.com's Crime Center for complete coverage