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How Can We Reduce the Errors from Benefits Transfer? An Investigation Using the Choice Experiment Method

  • Sergio Colombo
  • Nick Hanley

Policymakers are increasingly making use of benefits transfer in benefit-cost assessments of environmental policy. An important question is how big the resultant errors are, and how sensitive errors are to how the transfer is conducted. We employ a choice experiment focusing on landscape attributes to investigate the sensitivity of transfer error to procedures. The main findings are that errors depend on the choice of study site at which original valuations are sought, on whether a single site or pooled model is used; and that adding more information by pooling sites does not always seem to be economically desirable.

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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 84 (2008)
Issue (Month): 1 ()
Pages: 128-147

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Handle: RePEc:uwp:landec:v:84:y:2008:i:1:p:128-147
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  1. repec:cup:cbooks:9780521788304 is not listed on IDEAS
  2. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
  3. Anne Rozan, 2004. "Benefit Transfer: A Comparison of WTP for Air Quality between France and Germany," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(3), pages 295-306, November.
  4. Sergio Colombo & Nick Hanley & Javier Calatrava-Requena, 2005. "Designing Policy for Reducing the Off-farm Effects of Soil Erosion Using Choice Experiments," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 81-95.
  5. 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.
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