sufficiently homogeneous to constitute a unique market. Both of 

 these requirements have proved to be problematic for modeling 

 nonmarket recreation. 



In TCM variable definition, a major problem is that price is 

 not directly observed and must be inferred from survey data. In 

 most cases, distance is taken as the price variable for 

 estimation purposes and converted to travel costs by a fixed, 

 cents-per-mile travel cost parameter. In addition to direct 

 monetary transportation costs, the real cost of travel includes 

 the opportunity cost of time. There are several methods that 

 have been developed for estimating both of these components of 

 travel cost. With respect to transportation cost, the standard 

 approach recommended by the U.S. Water Resources Council is to 

 use the variable cost of vehicle operation, as defined by the 

 U.S. Department of Transportation (1984) publications on the 

 costs of owning and operating vehicles to determine 

 transportation costs. However, because the latter does not 

 necessarily reflect the actual costs associated with operating 

 recreational vehicles, an estimate is also derived using the 

 survey data on reported trip expenditures by our sample of deer 

 hunters. Both the standard and reported cost estimates are 

 described in a later section of this report. 



To determine the opportunity cost of travel time, the Water 

 Resources Council relies on Cesario's (i976) review of the value 

 of travel time to urban commuters. Cesario's work suggests using 

 a value between one-fourth and one-half of the wage rate as a 

 proxy for the opportunity cost of travel time. The approach 

 taken in the present study is to use one-third the wage rate for 



6 



