Abstract
The travel cost method (TCM) and the contingent value method evaluate economic impacts of global warming on natural environment. These methods, however, are partial equilibrium approaches for individual cases, and they are difficult to measure ripple effects throughout the economy due to climate change. To measure economic impacts of environmental change, the purpose of this study is to develop theoretical framework of computable general equilibrium model (CGE) consistent with utility function derived from recreation demand function estimated by the TCM, by solving an integrability problem. And, this study verifies our CGE model behavior and shows applicability to empirical analysis with our CGE model, by numerical experiment using hypothetical beach erosion scenarios covering beach around Japan.
