A Survey of Current Issues
- New Horizons in Environmental Economics series
Edited by Tom Tietenberg and Henk Folmer
Chapter 5: Value transfer and environmental policy
Ståle Navrud WHY VALUE TRANSFER? Increased use of economic analyses in the environment, transport, energy, health and cultural sectors has increased the demand for information on the economic value of environmental and other non-market goods by decisionmakers. Due to limited time and resources when decisions have to be made, new environmental valuation studies often cannot be performed, and decision makers must rely on transfer of economic estimates from previous studies (often termed ‘study sites’) of similar changes in environmental quality to value the environmental change at the ‘policy site’. This procedure is most often termed ‘benefit transfer’, but since damage estimates can also be transferred, I will use the more general term ‘value transfer’. Value transfer increases the uncertainty in the estimated environmental value, and a crucial question becomes: what level of accuracy is acceptable, and how does the need for accuracy vary with the policy use of the value? Results from validity tests of value transfer procedures have shown that the uncertainty in spatial and temporal benefit transfer could be quite large. Thus one should be careful in using value transfer in policy uses where the demand for accuracy is high. The practice of value transfer can be traced back to be the calculation of lost recreational value from the Hell’s Canyon hydroelectric project 30 years ago (see Krutilla and Fisher, 1975, chs 5 and 6). The first large-scale user of value transfer, however, was the USDA Forest Service. In preparation for the 1980 Resource Planning Assessment (RPA)...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.