Comparing benefit estimates from travel cost and contingent valuation using confidence intervals for Hicksian welfare measures

Abstract

An approach to determining whether benefit estimates derived from the travel cost method and contingent valuation method are statistically different is presented. Unlike past comparisons compensating variation is estimated for both methods. Benefit comparisons are made more rigorous by use of confidence intervals which are developed using the same Krinsky and Robb simulation technique for both valution mothods. The techniques are applied to deer hunting in California. While point estimates of benefits from both truncated and untruncated adjusted travel cost methods are lower than the contingent valuation method, the confidence intervals on the untruncated travel cost method do overlap the contingent valution method benefit estimates.