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Optimizing Farmland Preservation Choices Across Communities and Jurisdictional Scales: To What Extent are Amenity Values and Selection Criteria Transferable?

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  • Johnston, Robert J.
  • Duke, Joshua M.
  • Kukielka, Jessica B.

Abstract

This paper assesses the potential for function based benefit transfer to inform farmland preservation policy, with emphasis on distinctions between welfare estimation and policy prioritization. Data are drawn from a parallel choice experiments implemented in six communities and statewide in Connecticut. The analysis provides a range of empirical results of potential significance for policy, but two findings are of particular relevance. First, results suggest that transfer errors in WTP for farmland preservation are comparable to those found in other policy contexts, even across similar sites. Results also suggest, however, that welfare based policy rankings are strongly correlated across sites, even when dollar denominated transfer errors are substantial. This latter, robust finding underscores the risk of broad generalizations regarding transfer validity, and suggests that benefit transfer may be well suited to some uses.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6243.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6243

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Keywords: Land Economics/Use; Resource /Energy Economics and Policy; Q24; Q51;

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References

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  1. Robert Johnston, 2007. "Choice experiments, site similarity and benefits transfer," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(3), pages 331-351, November.
  2. Stavins, Robert N., 2004. "Environmental Economics," Working paper 276, Regulation2point0.
  3. Wuyang Hu & Michele M. Veeman & Wiktor L. Adamowicz, 2005. "Labelling Genetically Modified Food: Heterogeneous Consumer Preferences and the Value of Information," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(1), pages 83-102, 03.
  4. John C. Bergstrom & Paul Civita, 1999. "Status of Benefits Transfer in the United States and Canada: A Review," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(1), pages 79-87, 03.
  5. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
  6. Robert J. Johnston, 2001. "Estimating Amenity Benefits of Coastal Farmland," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 32(3), pages 305-325.
  7. Loomis, John B. & Traynor, Kerri & Brown, Thomas C., 1999. "Trichotomous Choice: A Possible Solution To Dual Response Objectives In Dichotomous Choice Contingent Valuation Questions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(02), December.
  8. Morrison, Mark & Bergland, Olvar, 2006. "Prospects for the use of choice modelling for benefit transfer," Ecological Economics, Elsevier, vol. 60(2), pages 420-428, December.
  9. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
  10. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
  11. Robert J. Johnston & Joshua M. Duke, 2007. "Willingness to Pay for Agricultural Land Preservation and Policy Process Attributes: Does the Method Matter?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 1098-1115.
  12. Robert J. Johnston & Joshua M. Duke, 2009. "Willingness to Pay for Land Preservation across States and Jurisdictional Scale: Implications for Benefit Transfer," Land Economics, University of Wisconsin Press, vol. 85(2), pages 217-237.
  13. Smith, V. Kerry & Van Houtven, George & Pattanayak, Subhrendu, 1999. "Benefit Transfer as Preference Calibration," Discussion Papers dp-99-36, Resources For the Future.
  14. 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.
  15. Duke, Joshua M. & Aull-Hyde, Rhonda, 2002. "Identifying public preferences for land preservation using the analytic hierarchy process," Ecological Economics, Elsevier, vol. 42(1-2), pages 131-145, August.
  16. Robert Johnston & Joshua Duke, 2008. "Benefit Transfer Equivalence Tests with Non-normal Distributions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(1), pages 1-23, September.
  17. 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.
  18. Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
  19. V. Kerry Smith & George Van Houtven & Subhrendu K. Pattanayak, 2002. "Benefit Transfer via Preference Calibration: "Prudential Algebra" for Policy," Land Economics, University of Wisconsin Press, vol. 78(1), pages 132-152.
  20. 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.
  21. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
  22. Mark Morrison & Jeff Bennett & Russell Blamey & Jordan Louviere, 2002. "Choice Modeling and Tests of Benefit Transfer," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 161-170.
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Cited by:
  1. Klaus Moeltner & Robert J. Johnston & Randall S. Rosenberger & Joshua M. Duke, 2009. "Benefit Transfer from Multiple Contingent Experiments: A Flexible Two-Step Model Combining Individual Choice Data with Community Characteristics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1335-1342.

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