Recreation Demand for Great Lakes Beaches and Responses to Algae

Dec 11, 2015, 10:30am - 12:00pm
Agricultural Administration Building, Room 105

Frank Lupi, Professor, Agricultural, Food and Resource Economics at Michigan State University, will present the Havlicek Memorial Seminar on Dec. 11th in Room 105 of the Agricultural Administration Building (2120 Fyffe Road) as part of the AEDE Applied Economics Seminar Series. His presentation will focus on "Recreation Demand for Great Lakes Beaches and Responses to Algae."

Abstract: Resurgent harmful algal blooms (HABs) in Lake Erie have heightened public and political interest in the economic benefits of improving and protecting Great Lakes water quality. I describe efforts to model the demand for Great Lakes beaches using data for Michigan residents. A general population survey of about 30,000 people was conducted to identify likely beachgoers and a follow up survey was used to gather detailed trip information and stated preferences from the likely visitors. A repeated random utility model with 3 levels of nesting is used to estimate a joint participation and site choice model of recreational demand on a set of 451 actual Great Lakes beach sites. The choice probabilities accommodate censoring of trip locations where the region of the trip is known but the exact site was not identified. One variant of the model distinguishes those that never visit Great Lake beaches from those that happen not to visit on any choice occasion. In all models, beach visits depend significantly on environmental factors such as water temperature and the history of beach closures at a site. The recreation demand model is then augmented with stated preference data on stated beach choices in response to different levels of algae on the beach and algae in the water. A variety of pooled model specifications are tested.

The Havlicek Memorial Seminar is sponsored by funds from the Havlicek Memorial Fund, which honors Joseph Havlicek, Jr., former AEDE Professor and Chair. Professor Havlicek, who was at different points in his well-accomplished life, a student, a faculty member, a leader and a researcher at Ohio State, focused on price analysis and applied econometrics in his career. The yearly seminar named after him focuses on new research in this field to continue Professor Havlicek’s dedication to this topic of study.

The event is open to the Ohio State community and RSVPs are not required. If you have any questions, please contact us.