| Abstract: | ABSTRACT: A travel cost model is developed to estimate the potential reductions in recreational benefits from sedimentation in Reelfoot Lake in northwestern Tennessee. In addition to the consumer surplus estimates generated by the model, three other aspects of the study were significant. First, the study applied a relatively untested methodology for deriving the opportunity cost of travel time. The study resulted in a value that is less than one-half of the Water Resource Council's “one-third of the wage rate” rule-of-thumb. Second, water quality perceptions were unsuccessfully incorporated into the model as a demand shifter. This raised questions as to the appropriate manner in which perceptions could be included in a travel cost model. Finally, a simple methodology was outlined by which estimates of the recreational value of Reelfoot Lake could be used to suggest how much cost could be justified for soil erosion control on agricultural land surrounding the lake. |
