“Estimation Of Community Values Of Lakes: A Study Of Lake Mokoan In Victoria, Australia”: A Comment

Herath in Vol 29, No 1 (1999) reports welfare estimates using two forms of travel cost methodology (zonal and individual) as well as contingent valuation methodology. This note examines: (a) internal inconsistencies in the stage 1 estimation (of both the zonal and individual travel cost methodology), and the computation of number of visitors per year, and (b) methodological problems in the calculation of consumer surplus and the procedure used in the individual travel cost methodology. The note is concerned with practical estimation issues, not theoretical or econometric aspects.