Choice Modelling, Non-Use Values and Benefit Transfer

Choice Modelling is a stated preference technique that has been widely used in marketing and transport applications, and has recently been used in several environmental applications, predominantly involving use values. There are several reasons for the interest shown in using choice modelling for non-market valuation. First, choice modelling has the potential to provide much greater information about people’s preferences than contingent valuation. Second, choice modelling appears to be particularly suited to benefit transfer because of its capacity to allow for differences in environmental improvements when transferring benefit estimates. Third, some proponents contend that choice modelling may be less prone to several of the biases that affect the contingent validity of using choice modelling to estimate non-use values, and for benefit transfer. It is found that choice modelling is also shown to be more suited to benefit transfer, particularly transfer of implicit prices.

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