Premium
A Utility Approach to the Valuation of Recreational and Aesthetic Experiences
Author(s) -
Sinden J. A.
Publication year - 1974
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239347
Subject(s) - recreation , valuation (finance) , consumption (sociology) , economics , econometrics , expected utility hypothesis , water utility , contingent valuation , microeconomics , revealed preference , marginal utility , actuarial science , computer science , willingness to pay , mathematical economics , finance , engineering , social science , water supply , environmental engineering , sociology , political science , law
A method for valuing extra‐market benefits is proposed and tested. The method rests on the empirical derivation of utility functions and indifference maps. Demand schedules were obtained from the indifference maps to provide specific benefit values. The method is compared to the conventional travel‐cost method for valuing recreational benefits. It is argued that the utility approach is cenceptually superior. Also, the utility data comprised both the benefit values from the indifference maps and direct survey responses as surrogates for utility. These data proved better predictors of consumption than the usual travel‐cost variables.