Choice Modeling and Tests of Benefit Transfer

10 Pages Posted: 1 Apr 2020

See all articles by Mark Morrison

Mark Morrison

Charles Sturt University

Russell Blamey

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

Jeff Bennett

Crawford School of Public Policy

Jordan Louviere

University of South Australia

Multiple version iconThere are 2 versions of this paper

Date Written: February 2002

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.

Keywords: benefit transfer, choice modeling, passive use values, stated preference techniques, D610, Q210

Suggested Citation

Morrison, Mark and Blamey, Russell and Bennett, Jeff W and Louviere, Jordan, Choice Modeling and Tests of Benefit Transfer (February 2002). American Journal of Agricultural Economics, Vol. 84, Issue 1, pp. 161-170, 2002, Available at SSRN: https://ssrn.com/abstract=3565340 or http://dx.doi.org/10.1111/1467-8276.00250

Mark Morrison

Charles Sturt University ( email )

Panorama Avenue
Room: C2
Bathurst NSW 2795
Australia
(02) 6338 4253 (Phone)
(02) 6338 4769 (Fax)

Russell Blamey

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

Canberra, Australian Capital Territory 0200
Australia

Jeff W Bennett (Contact Author)

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

Jordan Louviere

University of South Australia

37-44 North Terrace, City West Campus
Adelaide, 5001
Australia

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