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Benefit Transfer over Time of Ecosystem Values: the Case of Forest Recreation

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  • Marianne Zandersen
  • Mette Termansen
  • Frank S. Jensen
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    Abstract

    We conduct a functional benefit transfer over 20 years of total willingness to pay based on car-borne forest recreation in 52 forests, using a mixed specification of a random utility model and geographic information systems to allow heterogeneous preferences across the population and for heterogeneity over space. Results show that some preferences of forest attributes, such as species diversity and age, as well as transport mode have changed significantly over the period. Updating the transfer model with present demand for recreation improves the error margins by an average of 182%. However, average errors of the best transfer model remain 145%.

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    File URL: https://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/Working_Paper_FNU61.pdf
    File Function: First version, 2005
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    Bibliographic Info

    Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-61.

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    Length: 26 pages
    Date of creation: Mar 2005
    Date of revision: Mar 2005
    Handle: RePEc:sgc:wpaper:61

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    Related research

    Keywords: random utility model; value transfer over time; recreation; GIS;

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    References

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    1. Sébastien Dessus & David O’Connor, 1999. "Climate Policy Without Tears: CGE-Based Ancillary Benefits Estimates for Chile," OECD Development Centre Working Papers 156, OECD Publishing.
    2. 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.
    3. Brouwer, Roy, 2000. "Environmental value transfer: state of the art and future prospects," Ecological Economics, Elsevier, vol. 32(1), pages 137-152, January.
    4. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    5. Nick Hanley & Robin Ruffell, 1992. "The Valuation of Forest Characteristics," Working Papers Series 92/10, University of Stirling, Division of Economics.
    6. Downing, Mark & Ozuna, Teofilo Jr., 1996. "Testing the Reliability of the Benefit Function Transfer Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 316-322, May.
    7. Christie, Mike & Hanley, Nick & Warren, John & Murphy, Kevin & Wright, Robert & Hyde, Tony, 2006. "Valuing the diversity of biodiversity," Ecological Economics, Elsevier, vol. 58(2), pages 304-317, June.
    8. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, April.
    9. George R. Parsons & Michael S. Needelman, 1992. "Site Aggregation in a Random Utility Model of Recreation," Land Economics, University of Wisconsin Press, vol. 68(4), pages 418-433.
    10. Scarpa, Riccardo & Hutchinson, W. George & Chilton, Susan M. & Buongiorno, Joseph, 2000. "Importance of forest attributes in the willingness to pay for recreation: a contingent valuation study of Irish forests," Forest Policy and Economics, Elsevier, vol. 1(3-4), pages 315-329, December.
    11. Peter Feather & Daniel Hellerstein, 1997. "Calibrating Benefit Function Transfer to Assess the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 151-162.
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    Cited by:
    1. Ellen Moons & Bert Saveyn & Stef Proost & Martin Hermy, 2006. "Optimal location of new forests in a suburban region," Center for Economic Studies - Discussion papers ces0612, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
    2. Marianne Zandersen & Richard S.J. Tol, 2005. "A Meta-analysis of Forest Recreation Values in Europe," Working Papers FNU-86, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2005.

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