Reconsidering the hedonic vs. RUM debate in the valuation of recreational environmental amenities

Two revealed preference methods have emerged as the primary tools for valuing the environmental amenities of recreational resources: the hedonic travel cost method and the random utility method. While both methods are now widely applied, considerable debate still exists over the appropriateness of each method. This paper examines this debate in the literature and shows that much of the contention over the methods results from the improper application of the models or misinterpretations of the theory that underlies the models. Both models are shown to possess strengths and weaknesses that are important determinants of their effectiveness as valuation tools.