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Calibrating Benefit Function Transfer to Assess the Conservation Reserve Program

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  • Hellerstein, Daniel
  • Feather, Peter

Abstract

Benefit transfer offers an inexpensive alternative to conducting an original study to determine economic value. Unfortunately, benefit transfers can also result in biased welfare estimates. In this paper, we suggest a method of calibrating the benefit transfer to reduce this bias. An empirical example to determine the benefits of the Conservation Reserve Program on water-based recreation illustrates the potentially large biases that can result if the transfer is not calibrated.

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File URL: http://mpra.ub.uni-muenchen.de/25357/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25357.

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Date of creation: 1997
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Publication status: Published in American Journal of Agricultural Economics 79.1(1997): pp. 151-162
Handle: RePEc:pra:mprapa:25357

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Related research

Keywords: benefit transfer; Conservation Reserve Program; double hurdle model; random utility model; soil erosion.;

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  1. Parsons George R. & Kealy Mary Jo, 1995. "A Demand Theory for Number of Trips in a Random Utility Model of Recreation," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 357-367, November.
  2. Kling, Catherine L. & Bockstael, Nancy & Michael, W., 1999. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers 12334, Iowa State University, Department of Economics.
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