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An Econometric Evaluation of a Generalized Consumer Surplus Measure: The Mineral King Controversy

Charles J. Cicchetti, Anthony C. Fisher and V. Kerry Smith
Econometrica
Vol. 44, No. 6 (Nov., 1976), pp. 1259-1276
Published by: The Econometric Society
DOI: 10.2307/1914259
Stable URL: http://www.jstor.org/stable/1914259
Page Count: 18
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An Econometric Evaluation of a Generalized Consumer Surplus Measure: The Mineral King Controversy
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Abstract

This paper develops a household production model of individual behavior to focus on the choice of recreational activities. This framework is used to propose a generalized approach for measuring the consumer surplus associated with a natural resource development project. The model is applied to the proposed Mineral King project in California. The results indicate that the project is unlikely to yield a positive net present value.

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