George R. Parsons

Benefit transfer: Conceptual problems in estimating water quality benefits using existing studies

The Environmental Protection Agency has used existing studies to estimate the benefits of environmental improvements associated with several regulatory proposals The problems encountered in using existing studies to measure the benefits of water quality improvements are investigated in this paper. We propose criteria for selecting transfer studies and present a case study of a transfer. Our research indicates that although benefit transfer may offer promise, the fact that existing studies were not designed for transfer places severe limitations on the current effectiveness of transfer. Suggestions for future research are presented to address these limitations.

The Travel Cost Model

The travel cost model is used to value recreational uses of the environment. For example, it may be used to value the recreation loss associated with a beach closure due to an oil spill or to value the recreation gain associated with improved water quality on a river. The model is commonly applied in benefit-cost analyses and in natural resource damage assessments where recreation values play a role. Since the model is based on observed behavior, it is used to estimate use values only.

Familiar and Favorite Sites in a Random Utility Model of Beach Recreation

We estimate a random utility model of recreation demand accounting for choice set familiarity and favorite sites. Our approach differs from existing approaches by retaining all sites in estimating the parameters of site utility. Familiar and unfamiliar sites are specified with different utility functions. Favored sites are assumed to have higher utility than nonfavored sites in estimation.

Spatial Boundaries and Choice Set Definition in a Random Utility Model of Recreation Demand

We are concerned with the definition of choice set used in Random Utility Models of recreation demand. In particular, we are concerned with the spatial boundaries used to define choice sets. In this paper, using a model of day-trip fishing in Maine, we examine the sensitivity of parameter and welfare estimates to changes in the spatial boundary. We find that there exists some threshold distance beyond which adding more sites to the choice set has negligible effects on the estimation results.

Benefits Transfer in a Random Utility Model of Recreation

We divide a data set on lake recreation in Wisconsin into two nonoverlappmg samples, Milwaukee residents and non-Milwaukee residents. We then consider several hypothetical benefit transfers from a non-Milwaukee-based random utility model to Milwaukee residents. All transfers are for measuring water quality improvements. We consider transfers in which we assume no information on Milwaukee residents, limited (no behavioral) information, and some behavioral information. We consider simple transfers, model transfers, and updated transfers. In all cases we test the viability of the transfer by comparing it with benefits estimated from a random utility model estimated over the Milwaukee sample, which in effect is our “true” model. The values from the model and updated transfers typically deviated less than 10% from the true values. Confidence intervals are estimated by using the Krinsky-Robb procedure for all of the benefit measures computed from the random utility model.

Site Aggregation in a Random Utility Model of Recreation

Random Utility Models are commonly used to model the choice among a set of alternatives. Often, due to data or computational constraints, the analyst must use aggregated alternatives to estimate the model. These aggregates are defined by averaging characteristics of alternatives over prespecified groups. In this analysis, we demonstrate that unless some very restrictive conditions hold, the use of aggregated alternatives will lead to biased results. Then, using a data set of recreational fishing in Wisconsin, we show the effects that this bias can have on the results estimated from the model.

Valuing the Visual Disamenity of Offshore Wind Power Projects at Varying Distances from the Shore: An Application on the Delaware Shoreline

Several offshore wind power projects are under consideration in the United States. A concern with any such project is the visual disamenity it may create. Using a stated preference choice model, we estimated the external costs to residents of the state of Delaware for offshore wind turbines located at different distances from the coast. The annual costs to inland residents was

Estimation and Welfare Analysis With Large Demand Systems

19,

Measuring the Cost of Beach Retreat

9,

Incidental And Joint Consumption In Recreation Demand

1, and