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Demand and welfare effects in recreational travel models: Accounting for substitution between number of trips and days to stay

Hellstrom, Jorgen and Nordström, Jonas LU (2012) In Transportation Research. Part A: Policy & Practice 46(3). p.446-456
Abstract
In this paper we present a non-linear demand system for households' joint choice of number of trips and days to spend at a destination. The approach, which facilitates welfare analysis of exogenous policy and price changes, is used empirically to study the effects of an increased CO2 tax. In particular, we focus on the effect of including substitution between households choice of the number of trips and days to spend at a destination in the welfare analysis. The analysis reveals that the equivalent variation (EV) measure, for the count data demand system, can be seen as an upper bound for the households welfare loss. Approximating the welfare loss by the change in consumer surplus, accounting for the positive effect from longer stays,... (More)
In this paper we present a non-linear demand system for households' joint choice of number of trips and days to spend at a destination. The approach, which facilitates welfare analysis of exogenous policy and price changes, is used empirically to study the effects of an increased CO2 tax. In particular, we focus on the effect of including substitution between households choice of the number of trips and days to spend at a destination in the welfare analysis. The analysis reveals that the equivalent variation (EV) measure, for the count data demand system, can be seen as an upper bound for the households welfare loss. Approximating the welfare loss by the change in consumer surplus, accounting for the positive effect from longer stays, imposes a lower bound on the households welfare loss. The difference in the estimated loss measures, from the considered CO2 tax reform, is about 20%. This emphasizes the importance of accounting for substitutions toward longer stays in travel demand policy evaluations. (C) 2011 Elsevier Ltd. All rights reserved. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Demand analysis, Welfare effects, Count data, Bivariate zero inflation
in
Transportation Research. Part A: Policy & Practice
volume
46
issue
3
pages
446 - 456
publisher
Elsevier
external identifiers
  • wos:000301206400003
  • scopus:84155182983
ISSN
0965-8564
DOI
10.1016/j.tra.2011.11.001
language
English
LU publication?
yes
id
77d053e7-e62c-47e3-b58e-b2c350291a5b (old id 2517163)
date added to LUP
2012-05-09 10:33:53
date last changed
2017-01-01 05:32:16
@article{77d053e7-e62c-47e3-b58e-b2c350291a5b,
  abstract     = {In this paper we present a non-linear demand system for households' joint choice of number of trips and days to spend at a destination. The approach, which facilitates welfare analysis of exogenous policy and price changes, is used empirically to study the effects of an increased CO2 tax. In particular, we focus on the effect of including substitution between households choice of the number of trips and days to spend at a destination in the welfare analysis. The analysis reveals that the equivalent variation (EV) measure, for the count data demand system, can be seen as an upper bound for the households welfare loss. Approximating the welfare loss by the change in consumer surplus, accounting for the positive effect from longer stays, imposes a lower bound on the households welfare loss. The difference in the estimated loss measures, from the considered CO2 tax reform, is about 20%. This emphasizes the importance of accounting for substitutions toward longer stays in travel demand policy evaluations. (C) 2011 Elsevier Ltd. All rights reserved.},
  author       = {Hellstrom, Jorgen and Nordström, Jonas},
  issn         = {0965-8564},
  keyword      = {Demand analysis,Welfare effects,Count data,Bivariate zero inflation},
  language     = {eng},
  number       = {3},
  pages        = {446--456},
  publisher    = {Elsevier},
  series       = {Transportation Research. Part A: Policy & Practice},
  title        = {Demand and welfare effects in recreational travel models: Accounting for substitution between number of trips and days to stay},
  url          = {http://dx.doi.org/10.1016/j.tra.2011.11.001},
  volume       = {46},
  year         = {2012},
}