The impacts of three dimensions of (dis)similarities on water quality benefit transfer errors
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The impacts of three dimensions of (dis)similarities on water quality benefit transfer errors. / Carolus, Johannes Friedrich; Jacobsen, Jette Bredahl; Olsen, Søren Bøye.
In: Water Resources and Economics, Vol. 32, 100164, 2020.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - The impacts of three dimensions of (dis)similarities on water quality benefit transfer errors
AU - Carolus, Johannes Friedrich
AU - Jacobsen, Jette Bredahl
AU - Olsen, Søren Bøye
PY - 2020
Y1 - 2020
N2 - Benefit Transfer (BT) is often applied when a primary valuation study is considered too costly or time consuming to conduct. It is commonly assumed that BT performance improves with increasing similarity between study and policy sites. However, no common criteria for defining similarity exist, making it difficult to operationalise the concept of similarity in a practical BT context. We propose a structured framework for distinguishing between different degrees of similarity. In particular, we differentiate between three dimensions: physical, population and attribute similarity. While the first two are often used in the literature, attribute similarity is not. To investigate the impact attribute descriptions have on BT, we define it as whether or not the same ecosystem service categories are emphasised in the valuation studies. Using value estimates for water quality improvements obtained from 17 Choice Experiments conducted in Europe, we empirically test unit value transfer performance along a similarity gradient. The results confirm that increasing physical similarities across commodities and sites generally lead to lower transfer errors. However, when using income adjusted value transfer, we surprisingly find the opposite. Finally, we demonstrate that increasing attribute similarity may offset dissimilarities in terms of the site characteristics.
AB - Benefit Transfer (BT) is often applied when a primary valuation study is considered too costly or time consuming to conduct. It is commonly assumed that BT performance improves with increasing similarity between study and policy sites. However, no common criteria for defining similarity exist, making it difficult to operationalise the concept of similarity in a practical BT context. We propose a structured framework for distinguishing between different degrees of similarity. In particular, we differentiate between three dimensions: physical, population and attribute similarity. While the first two are often used in the literature, attribute similarity is not. To investigate the impact attribute descriptions have on BT, we define it as whether or not the same ecosystem service categories are emphasised in the valuation studies. Using value estimates for water quality improvements obtained from 17 Choice Experiments conducted in Europe, we empirically test unit value transfer performance along a similarity gradient. The results confirm that increasing physical similarities across commodities and sites generally lead to lower transfer errors. However, when using income adjusted value transfer, we surprisingly find the opposite. Finally, we demonstrate that increasing attribute similarity may offset dissimilarities in terms of the site characteristics.
KW - Benefit transfer
KW - Similarity
KW - Dissimilarity
KW - Transfer error
KW - Water quality
KW - Choice experiment
KW - Water framework directive
KW - WILLINGNESS-TO-PAY
KW - CHOICE EXPERIMENT
KW - CONTINGENT VALUATION
KW - PREFERENCE HETEROGENEITY
KW - NONMARKET BENEFITS
KW - RIVER RESTORATION
KW - SOCIAL BENEFITS
KW - IMPROVEMENTS
KW - VALIDITY
KW - CONTEXT
U2 - 10.1016/j.wre.2020.100164
DO - 10.1016/j.wre.2020.100164
M3 - Journal article
VL - 32
JO - Water Resources and Economics
JF - Water Resources and Economics
SN - 2212-4284
M1 - 100164
ER -
ID: 254668346