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How Reliable are Meta-Analyses for International Benefit Transfers?

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Author Info
Lindhjem, Henrik
Navrud, Ståle
Abstract

Meta-analysis has increasingly been used to synthesise the environmental valuation literature, but only a few test the use of these analyses for benefit transfer. These are typically based on national studies only. However, meta-analyses of valuation studies across countries are a potentially powerful tool for benefit transfer, especially for environmental goods where the domestic literature is scarce. We test the reliability of such international meta-analytic transfers, and find that even under conditions of homogeneity in valuation methods, cultural and institutional conditions across countries, and a meta-analysis with large explanatory power, the transfer errors could still be large. Further, international meta-analytic transfers do not on average perform better than simple value transfers averaging over domestic studies. Thus, we question whether the use of meta-analysis for practical benefit transfer achieves reliability gains justifying the increased effort. However, more meta-analytic benefit transfer tests should be performed for other environmental goods and other countries before discarding international meta-analysis as a tool for benefit transfer.

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File URL: http://mpra.ub.uni-muenchen.de/11484/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11484.

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Date of creation: Jul 2007
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Handle: RePEc:pra:mprapa:11484

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Related research
Keywords: benefit transfer; environmental valuation; meta-analysis; forest;

Find related papers by JEL classification:
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

References listed on IDEAS
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  1. Dadi Kristofersson & Ståle Navrud, 2005. "Validity Tests of Benefit Transfer – Are We Performing the Wrong Tests?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 30(3), pages 279-286, 03. [Downloadable!] (restricted)
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  13. Luke Brander & Raymond Florax & Jan Vermaat, 2006. "The Empirics of Wetland Valuation: A Comprehensive Summary and a Meta-Analysis of the Literature," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(2), pages 223-250, 02. [Downloadable!] (restricted)
  14. Rekola, Mika & Pouta, Eija, 2005. "Public preferences for uncertain regeneration cuttings: a contingent valuation experiment involving Finnish private forests," Forest Policy and Economics, Elsevier, vol. 7(4), pages 635-649, May. [Downloadable!] (restricted)
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    Other versions:
  19. Ready, Richard & Navrud, Stale, 2006. "International benefit transfer: Methods and validity tests," Ecological Economics, Elsevier, vol. 60(2), pages 429-434, December. [Downloadable!] (restricted)
  20. 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)
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