Demand and welfare effects in recreational travel models: Accounting for substitution between number of trips and days to stay
(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)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/2517163
- author
- Hellstrom, Jorgen and Nordström, Jonas LU
- organization
- publishing date
- 2012
- 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
- 2016-04-01 13:12:56
- date last changed
- 2022-01-27 17:56:37
@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}},
keywords = {{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}},
doi = {{10.1016/j.tra.2011.11.001}},
volume = {{46}},
year = {{2012}},
}