Travel cost analysis
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The travel cost method of economic valuation or a "travel cost analysis" is a method of economic valuation used in cost-benefit analysis when the value of something, such as ecosystem services that cannot be obtained through market prices. 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."
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[edit] External links
- [1] - Ecosystem Valuation.org
