The Value of Ranch Open Space to Tourists: Combining Observed and Contingent Behavior Data

Abstract

ABSTRACT Several empirical studies have estimated the value of agricultural land as open space to local residents. An important goup of individuals that may be affected by the loss of agricultural land are visitors to a region. The value of ranchland to tourists visiting a resort town in the Rocky Mountains is estimated through a travel cost model that combines information on observed behavior data from actual trips with contingent behavior data on intended current visitation if the resource were converted to urban and resort uses. The value of ranch open space to tourists is the gain or loss in consumer surplus derived from a visit to the study area attributable to the resource. A random effects Poisson regression model is estimated because of the panel nature of the data, accounting for the correlation of the multiple responses from heterogeneous individuals. Twenty‐five percent of the sample would reduce visitation and 23 percent of the sample would increase visitation if ranch open space were converted to urban and resort uses. The overall effect of converting ranch open space to resort and urban uses is no net change in average consumer surplus per trip for summer tourists in general.