Special Section: Problems and Issues in the Validity of Benefit Transfer Methodologies
Benefit transfer: Conceptual problems in estimating water quality benefits using existing studies
William H. Desvousges,
Michael C. Naughton,
George R. Parsons,
William H. Desvousges
Search for more papers by this authorMichael C. Naughton
Search for more papers by this authorGeorge R. Parsons
Search for more papers by this authorWilliam H. Desvousges,
Michael C. Naughton,
George R. Parsons,
William H. Desvousges
Search for more papers by this authorMichael C. Naughton
Search for more papers by this authorGeorge R. Parsons
Search for more papers by this authorAbstract
The Environmental Protection Agency has used existing studies to estimate the benefits of environmental improvements associated with several regulatory proposals. The problems encountered in using existing studies to measure the benefits of water quality improvements are investigated in this paper. We propose criteria for selecting transfer studies and present a case study of a transfer. Our research indicates that although benefit transfer may offer promise, the fact that existing studies were not designed for transfer places severe limitations on the current effectiveness of transfer. Suggestions for future research are presented to address these limitations.
References
- Bianchi, D. H., The economic value of streams for fishingRes. Rep. 25Water Resour. Inst., Univ. of Ky., Lexington, 1969.
- , Benefit analysis using indirect or imputed market methods, vol. II, Measuring the benefits of water quality improvements using recreation demand models, volume II N. E. Bockstael, W. M. Hanemann, I. E. Strand, Rep. CR-8-11043-01-0, 256Off. of Policy and Resour. Manage., U.S. Environ. Prot. Agency, Washington, D. C., 1986.
- Bockstael, N. E., K. E. McConnell, I. E. Strand, Measuring the benefits of improvements in water quality: the Chesapeake Bay, Mar. Resour. Econ., 6, 1–18, 1989.
10.1086/mre.6.1.42628999 Google Scholar
- Bowker, J. M., J. R. Stoll, Use of dichotomous choice nonmarket methods to value the whooping crane resource, Am. J. Agric. Econ., 70, 372–381, 1988.
- Brookshire, D. S., M. A. Thayer, W. D. Schulze, R. C. d'Arge, Valuing public goods: A comparison of survey and hedonic approaches, Am. Econ. Rev., 72, 165–177, 1982.
- Brown, G., R. Mendelsohn, The hedonic travel cost method, Rev. Econ. Stat., 66, 427–433, 1984.
- Cummings, R. G., D. S. Brookshire, W. D. Schulze, Valuing Environmental Goods: An Assessment of the Contingent Valuation Method, 270, Rowman and Allanheld, Totowa, N. J., 1986.
- Desvousges, W. H., V. K. Smith, M. P. McGivney, A comparison of alternative approaches for estimating recreation and related benefits of water quality improvementsRep. EPA-230-05-83-01, 336Off. of Policy Anal., U.S. Environ. Prot. Agency, Washington, D. C., 1983.
- Fisher, A., R. Raucher, Intrinsic benefits of improved water quality: Conceptual and empirical perspectives, Advances in Applied MicroEconomics, 3 V. K. Smith, A. D. Witte, 37–66, JAI Press, Greenwich, Conn., 1984.
10.1017/CBO9780511572180 Google Scholar
- Freeman, A. M., On the tactics of benefit estimation under Executive Order 12291, Environmental Policy Under Reagan's Executive Order: The Role of Benefit-Cost Analysis V. K. Smith, 167–186, University of North Carolina Press, Chapel Hill, 1984.
- Gramlich, F. W., The demand for clear water: The case of the Charles River, Natl. Tax J., 30, 183–194, 1977.
- Hanemann, W. M., Welfare evaluations in contingent evaluation experiments with discrete responses, Am. J. Agric. Econ., 66, 332–341, 1984.
- , Meta Systems, Incorporated, A methodological approach to an economic analysis of the beneficial outcomes of water quality improvements from sewage treatmentRep. EPA-230-11-85-017U.S. Environ. Prot. Agency, Washington, D. C., 1985.
- Mitchell, R. C., R. T. Carson, Using Surveys to Value Public Goods: A Contingent Valuation Method, 463, Resources for the Future, Washington, D. C., 1989.
- Naughton, M. C., W. H. Desvousges, Water quality benefits of additional pollution control in the pulp and paper industry, final report to the U.S. Environmental Protection Agencycontract 68-01-7033Res. Triangle Inst., Research Triangle Park, N. C., 1986.
- Sellar, C., J. P. Chavas, J. R. Stoll, Specification of the logit model: The case of valuation of nonmarket goods, J. Environ. Econ. Manage., 13, 382–390, 1986.
- Smith, V. K., W. H. Desvousges, Measuring Water Quality Benefits, 327, Kluwer-Nijhoff, Boston, Mass., 1986.
10.1007/978-94-009-4223-3 Google Scholar
- Smith, V. K., Y. Kaoru, Signals or noise? Explaining the variation in recreation benefit estimates, Am. J. Agric. Econ., 722, 419–433, 1990.
- Smith, V. K., W. H. Desvousges, A. Fisher, A comparison of direct and indirect methods for estimating environmental benefits, Am. J. of Agric. Econ., 68, 280–289, 1986.
- Sutherland, R. J., R. G. Walsh, Effect of distance on the preservation value of water quality, Land Econ., 62, 282–291, 1986.
- , U.S. Department of the Interior Fish and Wildlife Service, 1980 national survey of fishing, hunting and wildlife-associated recreation, reportU.S. Government Printing Office, Washington, D. C., 1982.
- , U.S. Environmental Protection Agency (EPA), An economic assessment of the benefits of the final effluent limitations guidelines for iron and steel manufacturersRep. EPA 230-04-82-005, Washington, D. C., 1982.
- Vaughan, W. J., C. S. Russell, Valuing a fishing day: An application of a systematic varying parameter model, Land Econ., 58, 45–63, 1982a.
- Vaughan, W. J., C. S. Russell, Freshwater recreational fishing? The national benefits of water pollution control, report to the Office of Policy, Planning, and EvaluationU.S. Environmental Protection Agency, Resour. for the Future, Washington, D. C., 1982b.
- Walsh, R. G., D. A. Greenley, R. A. Young, J. R. McKean, A. A. Prato, Option values, preservation values and recreational benefits of improved water quality: A case study of the South Platte River Basin, ColoradoRep. EPA-600/5-78-001Off. of Res. and Develop., U.S. Environ. Prot. Agency, Washington, D. C., 1978.
