This problem illustrates the problem with the TCM in regard to the dependence of estimated consumers surplus

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This problem illustrates the problem with the TCM in regard to the dependence of estimated consumers surplus on estimated travel costs per unit distance. Re-work the steps in Box 12.1 assuming that the per-mile travel cost is £1.2 rather than the £1 assumed there.

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Natural Resource And Environmental Economics

ISBN: 9780273655596

3rd Edition

Authors: Roger Perman, Yue Ma, Michael Common, David Maddison, James Mcgilvray

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