Explain how the travel cost method might be used to determin

Explain how the travel cost method might be used to determine the value visitors place on their right to visit a national park? If an unemployed person were hired to work on a public project. An accountant would include all his wages in an estimate of the project\'s cost to society. An economist however would not. Why?

Solution

3. By travel cost method TCM one is able to able to evaluate recreational value of the ecosystems of the site in question. In case of a national park, using TCM the visitors first divide the area in different zones as the no. of tourist visits and residing population then now one should calculate costs associated with respect to distance and time. Now using regression one should try to predict these costs including entry, food, lodging etc. and then compare to the available budget.