Benefit Transfer: A Comparison of WTP for Air Quality between France and Germany

A contingent valuation study was carried out under similar conditions on two sites simultaneously: Strasbourg (France) and Kehl (Germany) in order to test the reliability of the benefit transfer method. On average, the air quality is approximately the same in the two cities. Using a transfer of the benefit function, we compared the direct estimated benefits from improved air quality with the transferred benefits in the same city. The originality of this test is that the valued good is the same in both cities, which means that the transfer is an intra-site transfer. However our findings show that the method of benefit transfer was not generally valid. Indeed inhabitants of Kehl declared a higher price for their state of health and air quality than inhabitants in Strasbourg. This result could be explained by a stronger sensitivity to environmental problems in Germany.