Estimating Recreational Value of the Foy's Lake: An Application of Travel Cost Count Data Model for Truncated Zeros

Abstract

Abstract. To estimate the annual recreational value provided by the Foy’s Lake, using the most applicable model for on-site data, is the main objective of this study. To adhere to the objective of this study, individual travel cost method (ITCM) has been applied and zero truncated poisson regression model has been found plausible among other models to estimate the consumer surplus. Based on the estimate, the consumer surplus or recreational benefits per trip per visitor can be recommended as BDT 5,875 or US $ 73.44 and counting the consumer surplus per trip per visitor, the annual recreational value (total consumer surplus) provided by the lake is found to be BDT 321 million or US $ 40.2 million. Keywords: Individual Travel Cost Method, Zero Truncated Poisson Regression Model, Endogenous Stratification, Consumer Surplus. JEL. C24, Q26, Q51.