Choice modeling and tests of benefit transfer

Mark Morrison, Jeff Bennett, Russell Blamey, Jordan Louviere

    Research output: Contribution to journalArticlepeer-review

    166 Citations (Scopus)


    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.

    Original languageEnglish
    Pages (from-to)161-170
    Number of pages10
    JournalAmerican Journal of Agricultural Economics
    Issue number1
    Publication statusPublished - 2002


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