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Benefit transfer is a nonmarket valuation tool that is widely-used in a variety of decision contexts. Its primary role is deriving reliable estimates of value from prior research when new, original research is not feasible given time and resource constraints. This chapter begins by setting the development of benefit transfer in its historical context, which formally began in earnest in the early 1990’s in response to an increased need for value measures in environmental and natural resource management and policy decisions. The two primary types of benefit transfer—value transfer and function transfer—are conceptually defined, including key steps when conducting them and examples of their empirical application. Sub-types of value transfers discussed include point estimate and measures of central tendency, and administratively-approved value transfers. Sub-types of function transfers discussed include benefit or demand function, and meta-regression analysis transfers. Reliability of benefit transfer is shown to be 45% transfer error for value transfers and 36% transfer error for function transfers. Criteria for minimizing transfer error rates in benefit transfers are provided to help guide practitioner decisions when using this tool.
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- Benefit Transfer
Randall S. Rosenberger
John B. Loomis
- Springer Netherlands
- Chapter 11
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