Testing Choice Experiment for Benefit Transfer With Preference Heterogeneity

Posted: 7 Feb 2007

See all articles by Sergio Colombo

Sergio Colombo

Andalusian Institute of Agrarian Research

Javier Calatrava-Requena

Andalusian Institute of Agrarian Research

Nick Hanley

University of Glasgow - Department of Economics

Abstract

Benefit transfer is a cost-effective method for estimating the value of environmental goods that relies on information obtained in previous studies. The multiattribute approach of choice experiments should provide advantages in terms of benefit transfer, allowing differences in environmental improvements between sites as well as differences in socioeconomic and attitude characteristics between respondent populations. This article investigates the capability of choice experiment method to be used in environmental benefit transfer when a random parameters approach is used to allow for preference heterogeneity: we find that the inclusion of respondents' taste heterogeneity reduces the magnitude of the transfer error.

Suggested Citation

Colombo, Sergio and Calatrava-Requena, Javier and Hanley, Nick, Testing Choice Experiment for Benefit Transfer With Preference Heterogeneity. American Journal of Agricultural Economics, Vol. 89, No. 1, pp. 135-151, February 2007. Available at SSRN: https://ssrn.com/abstract=961672 or http://dx.doi.org/10.1111/j.1467-8276.2007.00968.x

Sergio Colombo

Andalusian Institute of Agrarian Research

Seville, 41092
Spain

Javier Calatrava-Requena

Andalusian Institute of Agrarian Research ( email )

Andalusian Institute of Agrarian Research
Seville, 41092
Spain

HOME PAGE: http://www.juntadeandalucia.es/innovacioncienciayempresa/ifapa/servlet/FrontController?action=Switch

Nick Hanley (Contact Author)

University of Glasgow - Department of Economics ( email )

Adam Smith Building
Glasgow, Scotland G12 8RT
United Kingdom
0141 330 4618 (Phone)
0141 330 4940 (Fax)

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