Compensating Variation for Recreational Policy: A Random Utility Approach to Boating in Florida

A nested logit random utility travel cost model is developed for recreational boating in southwest Florida. Using data from a survey of recreational boaters, the model estimates site choice probabilities and compensating variation for changes in boating speed limits. Behavior is modeled as a two-step, discrete-choice process, where boaters first select a launch point for their trailered boats, then select a boating destination based on site characteristics. The results of this particular model are currently being used in policy applications in Florida.