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Testing Choice Experiment for Benefit Transfer with Preference Heterogeneity
Author(s) -
Colombo Sergio,
Calatrava-Requena Javier,
Hanley Nick
Publication year - 2007
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2007.00968.x
Subject(s) - respondent , preference , econometrics , transfer (computing) , willingness to pay , revealed preference , choice modelling , value (mathematics) , computer science , economics , statistics , microeconomics , mathematics , parallel computing , political science , law
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.