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Meta-Functional Benefit Transfer for Wetland Valuation: Making the Most of Small Samples

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  • Klaus Moeltner

    () (Department of Resource Economics, University of Nevada, Reno)

  • Richard T. Woodward

    (Department of Agricultural Economics, Texas A&M University)

Abstract

This study applies functional Benefit Transfer via Meta-Regression Modeling to derive valuation estimates for wetlands in an actual policy setting of proposed groundwater transfers in Eastern Nevada. We illustrate how Bayesian estimation techniques can be used to overcome small sample problems notoriously present in Meta-functional Benefit Transfer. The highlights of our methodology are (i) The hierarchical modeling of heteroskedasticity, (ii) The ability to incorporate additional information via refined priors, and (ii) The derivation of measures of model performance with the corresponding option of model-averaged Benefit Transfer predictions. Our results indicate that economic losses associated with the disappearance of these wetlands can be substantial and that primary valuation studies are warranted.

Suggested Citation

  • Klaus Moeltner & Richard T. Woodward, 2007. "Meta-Functional Benefit Transfer for Wetland Valuation: Making the Most of Small Samples," Working Papers 07-012, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
  • Handle: RePEc:unr:wpaper:07-012
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    References listed on IDEAS

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    Cited by:

    1. Ahtiainen, Heini & Vanhatalo, Jarno, 2012. "The value of reducing eutrophication in European marine areas — A Bayesian meta-analysis," Ecological Economics, Elsevier, vol. 83(C), pages 1-10.
    2. Randall, Alan & Chen, Ding-Rong, 2011. "A Better Approach to Resolving Variable Selection Uncertainty in Meta Analysis for Benefits Transfer," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114788, European Association of Agricultural Economists.
    3. Havranek, Tomas & Horvath, Roman & Irsova, Zuzana & Rusnak, Marek, 2015. "Cross-country heterogeneity in intertemporal substitution," Journal of International Economics, Elsevier, pages 100-118.
    4. Tomáš Havránek & Zuzana Iršová, 2011. "How to Stir Up FDI Spillovers: Evidence from a Large Meta-Analysis," Working Papers IES 2011/34, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2011.
    5. Andrew Q. Philips, 2016. "Seeing the forest through the trees: a meta-analysis of political budget cycles," Public Choice, Springer, vol. 168(3), pages 313-341, September.
    6. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," Working Papers IES 2013/14, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2013.
    7. Patton, Douglas & Bergstrom, John C. & Moore, Rebecca & Covich, Alan, 2013. "Correspondence And Efficiency In Forecasts Of Ecosystem Service Benefits," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150559, Agricultural and Applied Economics Association.
    8. Michal Franta, 2016. "The Effect of Nonlinearity between Credit Conditions and Economic Activity on Density Forecasts," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 35(2), pages 147-166, March.
    9. Jan Babecky & Tomas Havranek, 2014. "Structural reforms and growth in transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 13-42, January.
    10. Havranek, Tomas & Horvath, Roman & Irsova, Zuzana & Rusnak, Marek, 2015. "Cross-country heterogeneity in intertemporal substitution," Journal of International Economics, Elsevier, pages 100-118.
    11. repec:eee:ecmode:v:64:y:2017:i:c:p:270-287 is not listed on IDEAS
    12. Havranek, Tomas & Rusnak, Marek & Sokolova, Anna, 2017. "Habit formation in consumption: A meta-analysis," European Economic Review, Elsevier, pages 142-167.
    13. Jan Babecky & Tomas Havranek, 2013. "Structural Reforms and Growth in Transition: A Meta-Analysis," Working Papers IES 2013/14, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2013.
    14. Crespo Cuaresma, Jesús & Fidrmuc, Jarko & Hake, Mariya, 2014. "Demand and supply drivers of foreign currency loans in CEECs: A meta-analysis," Economic Systems, Elsevier, vol. 38(1), pages 26-42.
    15. H. Spencer Banzhaf & James Boyd, 2012. "The Architecture and Measurement of an Ecosystem Services Index," Sustainability, MDPI, Open Access Journal, vol. 4(4), pages 1-32, March.
    16. Iršová, Zuzana & Havránek, Tomáš, 2013. "Determinants of Horizontal Spillovers from FDI: Evidence from a Large Meta-Analysis," World Development, Elsevier, vol. 42(C), pages 1-15.
    17. Kevin Boyle & Christopher Parmeter & Brent Boehlert & Robert Paterson, 2013. "Due Diligence in Meta-analyses to Support Benefit Transfers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 357-386.
    18. Allison Davis & Klaus Moeltner, 2009. "Valuing the Prevention of an Infestation: The Threat of the New Zealand Mud Snail in Northern Nevada," Working Papers 09-001, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
    19. Egan, Kevin J. & Corrigan, Jay R. & Dwyer, Daryl F., 2015. "Three reasons to use annual payments in contingent valuation surveys: Convergent validity, discount rates, and mental accounting," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 123-136.
    20. Davis, Alison & Moeltner, Klaus, 2010. "Valuing the Prevention of an Infestation: The Threat of the New Zealand Mud Snail in Northern Nevada," Agricultural and Resource Economics Review, Cambridge University Press, pages 56-74.
    21. Diana Zigraiova & Tomas Havranek, 2016. "Bank Competition And Financial Stability: Much Ado About Nothing?," Journal of Economic Surveys, Wiley Blackwell, pages 944-981.
    22. Tomáš Havránek & Zuzana Iršová, 2011. "How to Stir Up FDI Spillovers: Evidence from a Large Meta-Analysis," Working Papers IES 2011/34, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Oct 2011.
    23. Thijs Dekker & Roy Brouwer & Marjan Hofkes & Klaus Moeltner, 2011. "The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 597-624.

    More about this item

    Keywords

    Bayesian Model Averaging; t-Error Regression Model; Meta-Analysis; Benefit Transfer; Wetland Valuation;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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