Context-Sensitive Benefit Transfer Using Stated Choice Models: Specification and Convergent Validity for Policy Analysis

Abstract

Benefit transfer has been an important, practical policy tool appealing to government agencies, especially when time or budget is constrained. However, the literature fails to support convergent validity of benefit transfer using the stated-preference method. This empirical study conducts four convergent validity assessments of benefit transfer using the choice modeling method and data from Rhode Island and Massachusetts, regarding coastal land management. The comparisons evaluate how individual characteristics improve benefit transfer and yield insights relevant to research specifications to produce studies adaptable for transfer applications. Empirical tests show benefit transfer using choice modeling may be acceptable, and even empirically valid, depending on the policy objectives and the context.