Improving value transfer through socio‐economic adjustments in a multicountry choice experiment of water conservation alternatives |
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| Authors: | Roy Brouwer Julia Martin‐Ortega Thijs Dekker Laura Sardonini Joaquin Andreu Areti Kontogianni Michalis Skourtos Meri Raggi Davide Viaggi Manuel Pulido‐Velazquez John Rolfe Jill Windle |
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| Institution: | 1. Department of Environmental Economics, Institute for Environmental Studies, Vrije Universiteit Amsterdam, Amsterdam, Netherlands;2. The James Hutton Institute, Aberdeen, UK;3. Institute for Transport Studies, University of Leeds, United Kingdom;4. University of Bologna, Bologna, Italy;5. Research Institute of Water and Environmental Engineering (IIAMA), Universitat Politècnica de València, Valencia, Spain;6. Faculty of Mechanical Engineering, University of Western Macedonia, Kozani, Greece;7. Department of Agricultural Economics, Agricultural University of Athens, Greece;8. Business and Law, Central Queensland University, Rockhampton, Queensland, Australia |
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| Abstract: | This study tests the transferability of the nonmarket values of water conservation for domestic and environmental purposes across three south European countries and Australia applying a common choice experiment design. Different approaches are followed to test the transferability of the estimated values, aiming to minimise transfer errors for use in policy analysis, comparing both single‐ and multicountry transfers, with and without socio‐economic adjustments. Within Europe, significant differences are found between implicit prices for environmental water use, but not for domestic water use. In the Australian case study, alleviating restrictions on domestic water use has no significant value. Pooling the three European samples improves the transferability of the environmental flow values between Europe and Australia. Results show that a reduction in transfer error is achieved when controlling for unobserved and observed preference heterogeneity in the single‐ and multicountry transfers, providing additional support for the superiority of socio‐economic adjustment procedures in value transfer. |
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| Keywords: | benefits transfer choice experiment preference heterogeneity water conservation |
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