Dose-response function
This method is another based on the Cobb-Douglas production function. It has generally been applied in the context of pollution to estimate the effect of changes in environmental quality on the quantity of output; it has been widely applied in agriculture. Their relevance to tourism can be indicated by example. In the context of human-made resources, air pollution damage to buildings might affect their utility to occupiers or impair their visual appearance and so deter visits by tourists. The tourism sector itself can cause pollution and damage to natural resources, such as fragile land and marine based wildlife sites, which impairs their quality. This is equivalent to dose-response in the production of goods. The method seeks to measure and quantify financially the effect of changes in the quality of environmental services. It is closely related to avoided cost and averting expenditure methods.