This paper proposes and illustrates the use of a new approach to benefit transfer for the non-market valuation of environmental resources. It treats transfer as an identification problem that requires assessing whether available benefit estimates permit the parameters of a preference function to be identified. The transfer method proposed uses these identifying restrictions to calibrate preference parameters and bases the benefit estimates on that preference function. The approach is illustrated using travel cost, hedonic and contingent valuation estimates, as well as combinations of estimates. It has three potential advantages over conventional practice: (1) it allows multiple, potentially overlapping estimates of the benefits of an improvement in environmental quality to be combined consistently; (2) it assures the transferred estimates of the benefits attributed to a proposed change can never exceed income; and (3) it provides a set of additional "outputs" that offer plausibility checks of the benefit transfers.
V. Kerry Smith
George Van Houtven
Common Resources — Apr 24, 2020
Preparation Now for Environmental Opportunities in Fiscal Stimulus Programs
Coronavirus will motivate some fiscal stimulus spending proposals that could benefit the environment, as long as proponents of environmental programs are prepared for the opportunities.
Common Resources — Mar 18, 2020
Local Economic Impacts of Federal Protected Lands: National Monuments in the Mountain West
The prospect of lost livelihoods can produce conflict over the limits that national monuments place on land use, but creating monuments can also create value by growing new industries related to recreation and tourism.
Resources Articles — Mar 18, 2020
It’s a Good Time for Women to Win the Nobel Prize
Catherine Wolfram discusses last year's historic Nobel Prize in Economics, reviews the significance of randomized controlled trials, and shares wisdom for women in economics.