Travel Cost Method

Categories: Economics,

A pricing method that seeks to estimate a money value on the basis of the amount that people actually pay (in money and time) to gain access to beautiful sites, wilderness and so on, or to avoid various forms of damage and degradation. The costs incurred by visitors to a site are used to determine a demand curve for the recreational value they place upon that site. This can be the basis for estimates of the value of the site, and hence of the significance in monetary terms of benefit or damage to or loss of availability of the site.