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Summarize how one would use the travel cost method to estimate the recreational benefits of a...

Summarize how one would use the travel cost method to estimate the recreational benefits of a National Park. Use a hypothetical example.

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Answer #1

Lets consider the people of a particular place (X) has low travel cost (Rs 4000) and thus visits the hypothetical National park more than the people of a place (Y) (Rs 10000). However, for the very first visit to the park, one person of another place (Z) is ready to pay Rs 20500. The person kept on visiting unless his/her marginal Willingness To Pay becomes equal to marginal costs. From here we can know his consumer surplus.

Thus the consumer surplus of the people visiting the park is from three places by using the Travel cost method.

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