Benefit transfer: A review of methodologies and challenges

Abstract

For policy makers, regulators and natural resource managers, the resources necessary for original empirical resource valuations are often unavailable. A common alternative to original valuation studies is the practice of benefit transfer-the use of an empirical value estimate or estimates from a previous study or studies for application in a similar context. In order to reduce the error inherent in applying values from one parcel of land to another, researchers commonly use meta-analysis, or the "study of studies", to provide a more thorough and statistically valid value estimate for use in a benefit transfer. In the practice of benefit transfer, much emphasis has been placed on improving the validity of values for transfer, but fewer studies have focused on the appropriate application of the established estimates. In this article, several often disregarded concerns that should be addressed when practicing benefit transfer are identified. A special focus is placed on spatial considerations and the recent progress that has been made to incorporate spatial trends. Geographic information systems (GIS) are advocated as a useful tool for incorporating the spatial aspects of benefit transfer. Consensuses and trends in the literature are acknowledged, and areas of potential improvement are highlighted.