Meta-Regression and Benefit Transfer: Data Space, Model Space, and the Quest for ‘Optimal Scope’

Meta-functional Benefit Transfer, while conceptually attractive, is often plagued by the paucity of available source studies and related small sample problems. A broadening of scope of the Meta-Regression Model by adding data from “related, yet different” contexts or activities may circumvent these issues, but may not necessarily enhance the efficiency of transfer functions if the different contexts do not share policy-relevant parameters. We illustrate how different combinations of contexts can be interpreted as ‘data spaces’ which can then be explored for the most promising transfer function using Bayesian Model Search techniques. Our results indicate that for some scope-augmented data spaces model-averaged benefit predictions can be more efficient than those flowing from the baseline context and data.Bayesian Model Averaging; Stochastic Search Variable Selection; Meta-Analysis; Benefit Transfer; Resource Valuation

If You Provide It, Will They Read It? The Effect of Information on Choices

This paper investigates the effect of information on respondent's choices in an internet survey for measuring the value of water quality improvements in Deckers Creek (DC) watershed in Monongalia and Peterson Counties of West Virginia, USA. A multiattribute, choice experiment and multinomial logit (MNL) models are used in estimating the marginal utilities of restoring the three attributes of DC: aquatic life, swimming safety, and scenic quality. Response times serve as proxy variables regarding whether respondents read or did not read all the information provided in the survey. Response times fell quickly, but then tapered off as they progressed through the various sections of the survey. Results show that the estimated coefficients of subsamples, read and did not read all the information, were statistically different from each other. Based on log likelihood tests of MNL models, two subsamples of the survey population (read and did not read all information) were found to be from different populations. Estimates of marginal utilities reveal that respondents value aquatic life restoration the highest, followed by scenic quality restoration. Average compensating variation estimates for full restoration of the aquatic life and scenic quality attributes are $9 and$ 6 per month per household, respectively, when the subsamples are pooled. However, the individual subsamples resulted in $5 per month for aquatic life and$3 per month for scenic quality for respondents that read the information, while respondents that did not read the information resulted in statistically higher estimates of $16 and$12, respectively. While respondents' motives for not reading the resource information provided is uncertain, results show their values for watershed restoration are substantially higher than respondents that read the information.Demand and Price Analysis,

Modeling Migration Effects on Agricultural Lands: A Growth Equilibrium Model

We estimate a system-of-equations model designed to measure the interaction between intertemporal patterns of changes in population, employment, and agricultural land densities. The model is applied to West Virginia for the 1990-1999 period. Consistent with recent findings on migration patterns, the results show that jobs followed people. New jobs were captured by commuters, while agricultural land losses were occurring in the commuters' counties of origin or bedroom communities. However, counties with relatively more profitable and concentrated agricultural enterprises were less susceptible to alternative land use pressure than counties with less productive or fragmented agricultural land. Elasticities indicate population change is elastic, whereas employment and agricultural land density changes are inelastic to factors affecting them. Growth management, when combined with agricultural land retention programs, may be most effective at preserving agricultural land in high growth or potential growth areas.Land Economics/Use,

NONMARKET VALUE OF WESTERN VALLEY RANCHLAND USING CONTINGENT VALUATION

With the irreversible loss of agricultural land to develop uses in certain areas, there is increased concern that land be preserved for posterity'Â’s sake. We estimate the nonmarket value of a ranchland protection program in the Yampa River Valley in Routt County, Colorado, including the Steamboat Springs resort. The case study builds on previous land preservation studies by adding several preferences indicators. We find that local residentsÂ’' willingness to pay is substantial, but insufficient, to justify protecting the existing quantity of valley ranchland in the study area.Land Economics/Use,

Protest Adjustments in the Valuation of Watershed Restoration Using Payment Card Data

When using a willingness-to-pay (WTP) format in contingent valuation (CV) to value water-shed restoration, respondents may protest by questioning why they should pay to clean up a pollution problem that someone else created. Using a sample selection interval data model based on Bhat (1994) and Brox, Kumar, and Stollery (2003), we found that the decision to protest and WTP values were correlated. Protest sample selection bias resulted in a 300 percent overestimate of mean WTP per respondent. Using different ad hoc treatments of protesters, protest bias resulted in moderate effects (-10 percent to +14 percent) after controlling for sample selection bias.contingent valuation, protest bias, watershed restoration, sample selection, grouped Tobit, Resource /Energy Economics and Policy,

Benefit Transfer from Multiple Contingent Experiments: A Flexible Two-Step Model Combining Individual Choice Data with Community Characteristics

This study proposes a new approach to utilize information from existing choice experiments to predict policy outcomes for a transfer setting. Recognizing the difficulties from pooling raw data from experiments with different designs and sub-populations we first re-estimate all underlying Random Utility Models individually, and then combine them in a second stage process to form a weighted mixture density for the generation of policy-relevant welfare estimates. Using data from recent choice experiments on farmland preservation we illustrate that our strategy is more robust to transfer inaccuracies than single-site approaches. The specification of "intelligent" mixture weights will be a fruitful ground for future research in the area of Benefit Transfer.

PANEL STRATIFICATION IN META-ANALYSIS OF ENVIRONMENTAL AND NATURAL RESOURCE ECONOMIC STUDIES

Meta-analyses of past research outcomes are becoming more popular, however, the issue of the panel nature of data has not been empirically investigated. We test various forms of data stratifications into panels for outdoor recreation economic studies but do not find any significant effects, possibly because of inherent data complexity.Environmental Economics and Policy, Resource /Energy Economics and Policy,

TOTAL ECONOMIC VALUATION OF STREAM RESTORATION USING INTERNET AND MAIL SURVEYS

The economic value of restoring Deckers Creek in Monongalia and Preston Counties of West Virginia was determined from mail, internet and personal interview surveys. Multi-attribute, choice experiments were conducted and nested logit models were estimated to derive the economic values of full restoration for three attributes of this creek: aquatic life, swimming, and scenic quality. The relative economic values of attributes were: aquatic life > scenic quality ~ swimming. These economic values imply that respondents had the highest value for aquatic life when fully restoring Deckers Creek to a sustainable fishery rather than "put and take" fishery that can not sustain a fish population (defined as moderate restoration for aquatic life). The consumer surplus estimates for full restoration of all three attributes ranged between $12 and$16 per month per household. Potential stream users (anglers) had the largest consumer surplus gain from restoration while non-angler respondents had the lowest. When the consumer surplus estimates were aggregated up to the entire watershed population, the benefit from restoration of Deckers Creek was estimated to be about $1.9 million annually. This benefit does not account for any economic values from partial stream restoration. Based upon log likelihood tests of the nested logit models, two sub-samples of the survey population (the general population and stream users) were found to be from the same population. Thus, restoration choices by stream users may be representative of the watershed population, although the sample size of stream users was small in this study.Resource /Energy Economics and Policy,