(1) Rural Economy Research Centre, Teagasc, Athenry, Galway, Ireland;(2) Economics Department, University of Stirling, Stirling, Scotland;(3) Economics Department, National University of Ireland, Galway, Ireland
Abstract:
We adapt the standard random utility model to take account of the heterogeneity of recreational preferences by using what
we call a “skilled-based conditional logit framework”. By separating out our sample of whitewater kayakers into two exogenously
identifiable groups (based on their skill level) and running separate conditional logits for each group we are able to take
account of the fact that kayakers of different skill levels are looking for different characteristics from the whitewater
site they choose to visit. We find that not taking into account the differences in the skill of the kayakers and the grade
of the river will result in an overestimation of the welfare estimates associated with improvements to lower grade whitewater
sites (which are frequented by basic/intermediated proficiency level kayakers) and underestimating welfare estimates associated
with changes in the attributes of higher grade whitewater sites (which are frequented by advanced proficiency level kayakers).