Choice Modeling and Tests of Benefit Transfer

Posted: 1 Jun 2002

See all articles by Mark Morrison

Mark Morrison

Charles Sturt University

Jeff Bennett

Crawford School of Public Policy

Russell Blamey

Australian National University (ANU) - Research School of Social Sciences (RSSS)

Jordan J. Louviere

University of South Australia - Institute for Choice

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Abstract

Benefit transfer is increasingly being used by decision makers as a way of estimating environmental values suitable for use in benefit cost analysis. However, recent studies examining the validity of benefit transfer of passive use values estimated using contingent valuation have rejected the hypothesis of convergent validity. In this article, we demonstrate the usage of a form of conjoint analysis known as choice modeling for benefit transfer. Choice modeling has been touted as being particularly suitable for benefit transfer because it is possible to allow for differences in environmental quality and socioeconomic characteristics when transferring benefit estimates. We demonstrate that choice modeling is suitable for benefit transfer, particularly when the transfers involve implicit prices. Second, we examine the circumstances in which benefit transfer of choice modeling derived value estimates is likely to be most valid. Two split sample tests were undertaken to achieve this objective. The evidence from these tests indicates that transfers across different case study sites are likely to be subject to less error than those across different populations.

Suggested Citation

Morrison, Mark and Bennett, Jeff W and Blamey, Russell and Louviere, Jordan J., Choice Modeling and Tests of Benefit Transfer. Available at SSRN: https://ssrn.com/abstract=308798

Mark Morrison (Contact Author)

Charles Sturt University ( email )

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Australia
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Jeff W Bennett

Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Russell Blamey

Australian National University (ANU) - Research School of Social Sciences (RSSS)

Canberra, Australian Capital Territory 0200
Australia

Jordan J. Louviere

University of South Australia - Institute for Choice ( email )

Level 13
140 Arthur Street
North Sydney, New South Wales 2060
Australia

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