This video introduces concept of Travel Cost Method. A.k.a Zonal Travel Cost Method. This method uses actual visitors to find Willingness To Pay (WTP) to value a (recreational) site. This requires estimating a demand function. Such allows for calculating consumer surplus for all Zones. The zonal consumer surpluses can be added to find overall consumer surplus (Overall Benefits to society). This value can be compared to the alternative use of recreational site. This helps in avoiding loss of societal benefits of the recreational site. Hence it guides for the most valuable use of recreational site. The limitations of this method are also explained.
• My focus is on ‘Economic Interpretation’ so you understand ‘Economic Meaning’ which will enable you for ‘Economic Applications’ .
• At the end you’ll get the summary of key-points of the topic.
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Regards, DBM,
Email: bilalmehmood.dr@gmail.com