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Context Similarity and the Validity of Benefits Transfer: Is the Common Wisdom Correct?

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Author Info
Johnston, Robert J.

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Abstract

Choice experiments are designed to account for variations in environmental resources and site characteristics, as well as potential implications of these variations for willingness to pay. This may render choice experiment results highly suitable for benefits transfer. It is unclear, however, whether the flexibility of choice experiments renders the similarity of study and transfer sites less critical for transfer validity. Drawing from identical choice experiments conducted in different Rhode Island communities, this model assesses the extent to which error in function-based benefits transfer is related to the similarity of communities across a variety of observable dimensions. Results suggest that site similarity, at least across some dimensions, influences the validity of choice experiment benefits transfers. However, the use of some measures of similarity as indicators of transfer error may provide misleading results.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21221.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21221

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Keywords: Consumer/Household Economics;

References listed on IDEAS
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  1. Ram Shrestha & John Loomis, 2003. "Meta-Analytic Benefit Transfer of Outdoor Recreation Economic Values: Testing Out-of-Sample Convergent Validity," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(1), pages 79-100, May. [Downloadable!] (restricted)
  2. McConnell, K. E., 1990. "Models for referendum data: The structure of discrete choice models for contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 19-34, January. [Downloadable!] (restricted)
  3. Rosenberger, Randall S. & Stanley, Tom D., 2006. "Measurement, generalization, and publication: Sources of error in benefit transfers and their management," Ecological Economics, Elsevier, vol. 60(2), pages 372-378, December. [Downloadable!] (restricted)
  4. Yong Jiang & Stephen Swallow & Michael Mcgonagle, 2005. "Context-Sensitive Benefit Transfer Using Stated Choice Models: Specification and Convergent Validity for Policy Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 31(4), pages 477-499, 08. [Downloadable!] (restricted)
  5. Johnston, Robert J. & Swallow, Stephen K. & Bauer, Dana Marie & Anderson, Christopher M., 2003. "Preferences for Residential Development Attributes and Support for the Policy Process: Implications for Management and Conservation of Rural Landscapes," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(1), April. [Downloadable!]
  6. Mark Morrison & Jeff Bennett, 2004. "Valuing New South Wales rivers for use in benefit transfer," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society and Blackwell Publishing Asia Pty Ltd., vol. 48(4), pages 591-611, December. [Downloadable!] (restricted)
  7. Robert J. Johnston & Elena Y. Besedin & Richard Iovanna & Christopher J. Miller & Ryan F. Wardwell & Matthew H. Ranson, 2005. "Systematic Variation in Willingness to Pay for Aquatic Resource Improvements and Implications for Benefit Transfer: A Meta-Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(2-3), pages 221-248, 06. [Downloadable!] (restricted)
  8. Robert J. Johnston & Stephen K. Swallow & Timothy J. Tyrrell & Dana Marie Bauer, 2003. "Rural Amenity Values and Length of Residency," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(4), pages 1000-1015, November. [Downloadable!] (restricted)
  9. Johnston, Robert J. & Weaver, Thomas F. & Smith, Lynn A. & Swallow, Stephen K., 1995. "Contingent Valuation Focus Groups: Insights From Ethnographic Interview Techniques," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 24(1), April. [Downloadable!]
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