The travel cost method is used to analyze the recreation demand for North Carolina trails. Incorporated in the demand model are users' perceptions of trail quality and their stated number of annual trips. Trail demand is specified with panel data that consists of two separate observations per respondent. 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 would have taken to the last trail used had the site quality been ideal. Since 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 incorporated into the estimates of trail demand. Study findings showed users' ratings of trail quality can be successfully incorporated into a demand model to evaluate a hypothetical improvement in trail conditions. The estimated $15 increase in consumer surplus per trip is of practical importance to policy analyses aimed at improving social and environmental conditions averse to trail users.
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