Leisure and the Net Opportunity Cost of Travel Time in Recreation Demand Analysis: An Application to Gros Morne National Park

Research reveals that visitors to Gros Morne National Park, a remote UNESCO World Heritage Site, value recreational access with a lower opportunity cost of travel time relative to their wage rate compared to previous studies. This finding challenges conventional assumptions by endogenously estimating the fraction of hourly earnings that best represents this cost, rather than imposing it exogenously. The study employs advanced count data models accounting for zero-truncation and overdispersion, providing a nuanced understanding of consumer surplus in park visitation. By linking visitor characteristics to opportunity costs, the research offers new insights into recreational demand analysis, particularly for remote sites.

Amoako-Tuffour, J., & Martínez-Espiñeira, R. (2012). Leisure and the Net Opportunity Cost of Travel Time in Recreation Demand Analysis: An Application to Gros Morne National Park. Journal of Applied Economics, 15(1), 25–49. https://doi.org/10.1016/s1514-0326(12)60002-6