The travel cost method is used to analyze the recreation demand for North C
arolina trails. Incorporated in the demand model are users' perceptions of
trail quality and their stated number of annual trips. Trail demand is spec
ified with panel data that consists of two separate observations per respon
dent. Users' behaviors are analyzed by combining both data on the observed
trip counts and stated trips. Stated trips are the number of trips a user w
ould have taken to the last trail used had the site quality been ideal. Sin
ce both users and non users of trails during the past 12 months were asked
their stated trips if quality improved, the non-participation effect was in
corporated into the estimates of trail demand. Study findings showed users'
ratings of trail quality can be successfully incorporated into a demand mo
del to evaluate a hypothetical improvement in trail conditions. The estimat
ed $15 increase in consumer surplus per trip is of practical importance to
policy analyses aimed at improving social and environmental conditions aver
se to trail users.