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
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.
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.
Permanent Funding for the Land and Water Conservation Fund: Three Next Steps
Recent pending developments for the Land and Water Conservation Fund will be even better for federal policy toward outdoor recreation, if three next steps are included.