In the last fifty years, the Travel Cost Method (TCM) has evolved from simple zonal demand models to theoretically and econometrically sophisticated variants of the well-know discrete choice models. However, although the method is now a robust tool producing useful estimates of the recreational benefits accruing to users of natural areas, many problems have not yet been convincingly resolved within the literature. This thesis provides a rich insight to three of these topics in an attempt of overcoming the current limitations of the TCM and, at the same time, provide enhanced information contributing to the environmental policy debate. In this way, the measurement and representation of environmental diversity, the estimation of aggregate demands for large geographical areas and the consideration of preference heterogeneity among recreators have been investigated using a TCM application to forest recreation in the Island of Mallorca (Spain).
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