Intertemporal Substitution in Travel Cost Models with Seasonal Time Constraints

Patrick Lloyd-Smith, Joshua K. Abbott, Wiktor Adamowicz, Daniel Willard

Research output: Contribution to journalArticlepeer-review

Abstract

Travel cost models using the wage rate to value time make the implicit assumption that the value of time is equalized throughout the year. We develop a seasonal travel cost model that allows the value of time to vary by season. We estimate the model using data from a survey of recreational anglers in the Gulf of Mexico. We find that people's value of time is 55% larger on average in the summer compared to other times of year and find substantial differences in derived welfare estimates if a time-constant value of time measure is used instead. (JEL Q26, Q51)

Original languageEnglish (US)
Pages (from-to)399-417
Number of pages19
JournalLand Economics
Volume96
Issue number3
DOIs
StatePublished - Aug 2020

ASJC Scopus subject areas

  • Environmental Science (miscellaneous)
  • Economics and Econometrics

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