Benefit Transfer Bangkok 2013 When to use benefit
Benefit Transfer Bangkok 2013
When to use benefit transfer? • Project has small budget, cannot do primary valuation • Many suitable valuation studies available
What is benefit transfer? • Extrapolate from valuation studies done elsewhere to own site • For example, use value of natural mangrove forest in Sundarbon in southwest Bangladesh to value planted mangrove in south central Bangladesh • Ideal to use similar environmental good in similar society
Method • Use value of site, value per hectare, or valuation function – Want most similar comparison – E. g. two similar sites- use value of site – Small site versus large site- value per hectare – Natural site versus manmade- use valuation function that recognizes two have different values
Across Countries • Best to use values from own country • Must adjust for income if use values across countries- many sites have income elasticity near 1 - values proportional to income • Adjust for known differences between countries- some species or places have high values to a specific culture
Limitation • Failure to find close substitute – Compare a tree to an air conditioner for cooling • May be closer to an umbrella – Compare a polar bear to a snail • Keystone species worth much more than non-mammals – Compare remote beach to Miami Beach • Places close to large populations are worth more than inaccessible sites – Rank sites by NPP • People rarely value natural sites for NPP
References • “Environmental Valuation in South Asia” by A. K. Enamul Haque, M. N. Murty, and Priya Shyamsundar, 2011 • “The International Handbook On Non-Market Environmental Valuation” by Jeff Bennett 2011 • “Valuing the Environment in Developing Countries: Case Studies” by David Pearce, Corin Pearce, Charles Palmer 2002 • “Economic valuation of the environment: Methods and case studies” by Guy Garrod and K. G. WIllis 1999 • “Valuing Environmental Preferences: Theory and Practice of the Contingent Valuation Method in the US, EU, and Developing Countries” Ian Bateman and K. G. Willis 2001
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