IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Income inequality and the international transfer of environmental values

Listed author(s):
  • Meya, Jasper N.
  • Drupp, Moritz A.
  • Hanley, Nick

How the valuation of environmental goods is related to income is a key question for environmental economics, but the role of income inequality is often neglected. We study how income inequality affects the international transfer of the valuation of environmental goods - a practice called value or benefit transfer. Specifically, we apply theory-driven transfer factors to examine whether adjusting for income inequality can reduce errors made in benefit transfer, drawing on a multi-country valuation study on water quality improvement. Our convergent validity analysis shows that income inequality adjustment reduces benefit transfer errors by more than 1.5 percentage points on average across all transfers. The adjustment for inequality is particularly important when income is distributed more unequally at the policy site relative to the study site, yielding reductions in transfer errors of up to 33 percentage points. Our results are relevant for policy appraisal, environmental accounting, and more generally for the role of income inequality in non-market valuation.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://www.econstor.eu/bitstream/10419/163521/1/894603361.pdf
Download Restriction: no

Paper provided by Christian-Albrechts-University of Kiel, Department of Economics in its series Economics Working Papers with number 2017-03.

as
in new window

Length:
Date of creation: 2017
Handle: RePEc:zbw:cauewp:201703
Contact details of provider: Postal:
D-24098 Kiel,Wilhelm-Seelig-Platz 1

Phone: 0431-880 3282
Fax: 0431-880 3150
Web page: http://www.vwl.uni-kiel.de/en

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Kirchhoff, Stefanie & Colby, Bonnie G. & LaFrance, Jeffrey T., 1997. "Evaluating the Performance of Benefit Transfer: An Empirical Inquiry," Journal of Environmental Economics and Management, Elsevier, vol. 33(1), pages 75-93, May.
  2. Charles Griffiths & Heather Klemick & Matt Massey & Chris Moore & Steve Newbold & David Simpson & Patrick Walsh & William Wheeler, 2012. "U.S. Environmental Protection Agency Valuation of Surface Water Quality Improvements," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 6(1), pages 130-146.
  3. Bergstrom, John C. & Taylor, Laura O., 2006. "Using meta-analysis for benefits transfer: Theory and practice," Ecological Economics, Elsevier, vol. 60(2), pages 351-360, December.
  4. Carl Obst & Lars Hein & Bram Edens, 2016. "National Accounting and the Valuation of Ecosystem Assets and Their Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 1-23, May.
  5. Udo Ebert, 2003. "Environmental Goods and the Distribution of Income," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(4), pages 435-459, August.
  6. Baumgärtner, Stefan & Drupp, Moritz A. & Meya, Jasper N. & Munz, Jan M. & Quaas, Martin F., 2016. "Income inequality and willingness to pay for public environmental goods," Economics Working Papers 2016-04, Christian-Albrechts-University of Kiel, Department of Economics.
  7. Richard Ready & Ståle Navrud & Brett Day & Richard Dubourg & Fernando Machado & Susana Mourato & Frank Spanninks & Maria Rodriquez, 2004. "Benefit Transfer in Europe: How Reliable Are Transfers between Countries?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(1), pages 67-82, September.
  8. Kaul, Sapna & Boyle, Kevin J. & Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2013. "What can we learn from benefit transfer errors? Evidence from 20 years of research on convergent validity," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 90-104.
  9. Drupp, Moritz A., 2016. "Limits to substitution between ecosystem services and manufactured goods and implications for social discounting," Economics Working Papers 2016-05, Christian-Albrechts-University of Kiel, Department of Economics.
  10. Jette Jacobsen & Nick Hanley, 2009. "Are There Income Effects on Global Willingness to Pay for Biodiversity Conservation?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(2), pages 137-160, June.
  11. I. Bateman & R. Brouwer & S. Ferrini & M. Schaafsma & D. Barton & A. Dubgaard & B. Hasler & S. Hime & I. Liekens & S. Navrud & L. De Nocker & R. Ščeponavičiūtė & D. Semėnienė, 2011. "Making Benefit Transfers Work: Deriving and Testing Principles for Value Transfers for Similar and Dissimilar Sites Using a Case Study of the Non-Market Benefits of Water Quality Improvements Across E," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(3), pages 365-387, November.
  12. Thomas Broberg, 2010. "Income Treatment Effects in Contingent Valuation: The Case of the Swedish Predator Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(1), pages 1-17, May.
  13. V. Kerry Smith & George Van Houtven & Subhrendu K. Pattanayak, 2002. "Benefit Transfer via Preference Calibration: "Prudential Algebra" for Policy," Land Economics, University of Wisconsin Press, vol. 78(1), pages 132-152.
  14. Richardson, Leslie & Loomis, John & Kroeger, Timm & Casey, Frank, 2015. "The role of benefit transfer in ecosystem service valuation," Ecological Economics, Elsevier, vol. 115(C), pages 51-58.
  15. Smith, V. Kerry & Pattanayak, Subhrendu K. & Van Houtven, George L., 2006. "Structural benefit transfer: An example using VSL estimates," Ecological Economics, Elsevier, vol. 60(2), pages 361-371, December.
  16. Barton, David N., 2002. "The transferability of benefit transfer: contingent valuation of water quality improvements in Costa Rica," Ecological Economics, Elsevier, vol. 42(1-2), pages 147-164, August.
  17. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2009. "Parametric Estimations of the World Distribution of Income," NBER Working Papers 15433, National Bureau of Economic Research, Inc.
  18. Ready, Richard & Navrud, Stale, 2006. "International benefit transfer: Methods and validity tests," Ecological Economics, Elsevier, vol. 60(2), pages 429-434, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:zbw:cauewp:201703. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.