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Testing Different Types of Benefit Transfer in Valuation of Ecosystem Services: New Zealand Winegrowing Case Studies

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Author Info
Baskaran, Ramesh
Cullen, Ross
Colombo, Sergio

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Abstract

Most ecosystem services (ES) are neither priced nor marketed. Resource managers may fail to take into account degradation of unpriced services in their resource management decisions. Being able to estimate values for ES is fundamental to designing policies to induce resource users to provide (or improve) ES at levels that are acceptable to society. Conducting ecosystem valuation via non-market methods is costly and time consuming. Benefit Transfer (BT) using choice modeling (CM) is a potentially cost-effective method for valuing ES by transferring information from existing valuation studies (and study sites) to a target area of interest (policy sites). The prime objective of this paper is to examine the validity of BT and hence whether it is feasible to conduct the transfer process and assist policy making. The paper focuses on the environmental impact of winegrowing practices in two New Zealand winegrowing regions. The two sites, Hawke’s Bay and Marlborough, have similar environmental issues and attributes but are geographically separated. The study estimates WTP and Compensating Surplus (CS) for ES applying CM and, subsequently, given the preferences of respondents across sites and populations, tests the transferability of unadjusted value transfer (WTP) and benefits function (CS) assessing four different types of BT.

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Publisher Info
Paper provided by Australian Agricultural and Resource Economics Society in its series 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia with number 48189.

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Date of creation: 2009
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Handle: RePEc:ags:aare09:48189

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Related research
Keywords: Benefit transfer; choice modeling; New Zealand winegrowing; ecosystem services;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239. [Downloadable!] (restricted)
  2. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  4. Jürgen Meyerhoff & Ulf Liebe, 2008. "Do protest responses to a contingent valuation question and a choice experiment differ?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(4), pages 433-446, April. [Downloadable!] (restricted)
  5. Swinton, Scott M. & Lupi, Frank & Robertson, G. Philip & Hamilton, Stephen K., 2007. "Ecosystem services and agriculture: Cultivating agricultural ecosystems for diverse benefits," Ecological Economics, Elsevier, vol. 64(2), pages 245-252, December. [Downloadable!] (restricted)
  6. Kelly L. Giraud & John B. Loomis, 2005. "Computational Methods for Measuring the Difference of Empirical Distributions," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(2), pages 353-365, 05. [Downloadable!] (restricted)
  7. Sergio Colombo & Javier Calatrava-Requena & Nick Hanley, 2007. "Testing Choice Experiment for Benefit Transfer with Preference Heterogeneity," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 89(1), pages 135-151, 02. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. Nick Hanley & Sergio Colombo & Dugald Tinch & Andrew Black & Ashar Aftab, 2006. "Estimating the benefits of water quality improvements under the Water Framework Directive: are benefits transferable?," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 391-413, September.
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This page was last updated on 2009-11-26.


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