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Meta-Modeling and Benefit Transfer: The Empirical Relevance of Source-Consistency in Welfare Measures

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  • Robert Johnston
  • Klaus Moeltner

Abstract

A common assumption within the meta-analysis and benefit transfer literature is that the validity of benefit predictions depends on the utility-theoretic consistency of welfare measures in underlying source studies. However, to date there exists little evidence as to the empirical relevance of this proposition in terms of the accuracy or efficiency of predicted benefits. Using Bayesian Model Search techniques we examine whether different portions of metadata, distinguished by underlying welfare construct, share common willingness-to-pay distributions. Applying our algorithm to two separate meta-datasets we find strong evidence of information sharing across welfare categories for a large subset of contexts. For cases where information sharing is indicated, substantial efficiency gains in predicted benefits can be achieved by pooling the underlying data. Copyright Springer Science+Business Media Dordrecht 2014

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  • Robert Johnston & Klaus Moeltner, 2014. "Meta-Modeling and Benefit Transfer: The Empirical Relevance of Source-Consistency in Welfare Measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 337-361, November.
    • Handle: RePEc:kap:enreec:v:59:y:2014:i:3:p:337-361
    DOI: 10.1007/s10640-013-9730-3
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    1. Robert J. Johnston & Elena Y. Besedin & Benedict M. Holland, 2019. "Modeling Distance Decay Within Valuation Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 657-690, March.
    2. Dennis Guignet & Matthew T. Heberling & Michael Papenfus & Olivia Griot, 2022. "Property Values, Water Quality, and Benefit Transfer: A Nationwide Meta-analysis," Land Economics, University of Wisconsin Press, vol. 98(2), pages 191-218.
    3. Ian Bateman & Hassan Benchekroun & Christian Vossler, 2015. "EAERE Award for the Best Paper Published in Environmental and Resource Economics During 2014," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 1-2, September.
    4. Heather Klemick & Charles Griffiths & Dennis Guignet & Patrick Walsh, 2018. "Improving Water Quality in an Iconic Estuary: An Internal Meta-analysis of Property Value Impacts Around the Chesapeake Bay," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 265-292, February.
    5. Hermine Vedogbeton & Robert J. Johnston, 2020. "Commodity Consistent Meta-Analysis of Wetland Values: An Illustration for Coastal Marsh Habitat," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 835-865, April.
    6. Moeltner, Klaus, 2019. "Bayesian nonlinear meta regression for benefit transfer," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 44-62.
    7. Chaikumbung, Mayula & Doucouliagos, Hristos & Scarborough, Helen, 2016. "The economic value of wetlands in developing countries: A meta-regression analysis," Ecological Economics, Elsevier, vol. 124(C), pages 164-174.
    8. Masiero, Mauro & Franceschinis, Cristiano & Mattea, Stefania & Thiene, Mara & Pettenella, Davide & Scarpa, Riccardo, 2018. "Ecosystem services’ values and improved revenue collection for regional protected areas," Ecosystem Services, Elsevier, vol. 34(PA), pages 136-153.
    9. Dundas, Steven J. & von Haefen, Roger H., 2019. "The Effects of Weather on Recreational Fishing Demand and Adaptation: Implications for a Changing Climate," CEnREP Working Papers 283949, North Carolina State University, Department of Agricultural and Resource Economics.
    10. Robert J. Johnston & Kevin J. Boyle & Maria L. Loureiro & Ståle Navrud & John Rolfe, 2021. "Guidance to Enhance the Validity and Credibility of Environmental Benefit Transfers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 575-624, July.
    11. Steven J. Dundas & Roger H. von Haefen, 2021. "The importance of data structure and nonlinearities in estimating climate impacts on outdoor recreation," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 107(3), pages 2053-2075, July.
    12. Gebeyehu Fetene & Søren Olsen & Ole Bonnichsen, 2014. "Disentangling the Pure Time Effect From Site and Preference Heterogeneity Effects in Benefit Transfer: An Empirical Investigation of Transferability," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(4), pages 583-611, December.
    13. Robert J. Johnston & Elena Y. Besedin & Ryan Stapler, 2017. "Enhanced Geospatial Validity for Meta-analysis and Environmental Benefit Transfer: An Application to Water Quality Improvements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 343-375, October.
    14. Ghermandi, Andrea & Sheela, Albert Moses & Justus, Joseph, 2016. "Integrating similarity analysis and ecosystem service value transfer: Results from a tropical coastal wetland in India," Ecosystem Services, Elsevier, vol. 22(PA), pages 73-82.
    15. Dundas, Steven J. & von Haefen, Roger H., 2015. "Weather Effects on the Demand for Coastal Recreational Fishing: Implications for a Changing Climate," CEnREP Working Papers 264980, North Carolina State University, Department of Agricultural and Resource Economics.

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