Abstract

We examine recreation demand, economic value, and visitor expenditure patterns for Cape Hatteras National Seashore (CHNS) on the Outer Banks, North Carolina. CHNS is one of the largest protected barrier islands on the East Coast and is remote, accessible only by ferry or a single stretch of road running along the island chain. We present a unified approach to correcting for avidity bias due to onsite sampling in descriptive statistics and demand modeling, extending the Shaw (1988) correction to the Generalized Negative Binomial model. We demonstrate the effects of avidity bias in descriptive statistics; correcting expenditure estimates increases economic impact by 17%, reflecting larger magnitude in spending patterns of less avid users that live further from CNHS. Correcting for avidity bias in recreation demand lowers welfare estimates, which are still, however, quite large at $403/household, per trip (2002 USD).

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