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A Combinatorial Optimization Approach to Nonmarket Environmental Benefit Aggregation via Simulated Populations

  • Stephen Hynes
  • Nick Hanley
  • Cathal O’Donoghue

This paper considers the use of a "combinatorial optimization" technique in the aggregation of environmental benefit values. Combinatorial optimization is used to statistically match population census data to a contingent valuation survey. The matched survey and census information is then used to produce regional and national total willingness-to-pay figures. These figures are then compared to figures derived using more standard approaches to calculating aggregate environment benefit values. The choice of aggregation approach is shown to have a major impact upon estimates of total benefits at a regional level, especially when the target population displays considerable heterogeneity across space.

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

Volume (Year): 86 (2010)
Issue (Month): 2 ()
Pages: 345-362

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Handle: RePEc:uwp:landec:v:86:y:2010:i:2:p:345-362
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  1. David J. Lewis & Andrew J. Plantinga, 2007. "Policies for Habitat Fragmentation: Combining Econometrics with GIS-Based Landscape Simulations," Land Economics, University of Wisconsin Press, vol. 83(2), pages 109-127.
  2. John B. Loomis, 1987. "Expanding Contingent Value Sample Estimates to Aggregate Benefit Estimates: Current Practices and Proposed Solutions," Land Economics, University of Wisconsin Press, vol. 63(4), pages 396-402.
  3. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
  4. Rosenberger, Randall S. & Stanley, Tom D., 2006. "Measurement, generalization, and publication: Sources of error in benefit transfers and their management," Ecological Economics, Elsevier, vol. 60(2), pages 372-378, December.
  5. V. Kerry Smith, 1993. "Nonmarket Valuation of Environmental Resources: An Interpretive Appraisal," Land Economics, University of Wisconsin Press, vol. 69(1), pages 1-26.
  6. P Williamson & M Birkin & P H Rees, 1998. "The estimation of population microdata by using data from small area statistics and samples of anonymised records," Environment and Planning A, Pion Ltd, London, vol. 30(5), pages 785-816, May.
  7. P Williamson & M Birkin & P H Rees, 1998. "The Estimation of Population Microdata by Using Data from Small Area Statistics and Samples of Anonymised Records," Environment and Planning A, , vol. 30(5), pages 785-816, May.
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