Value transfer using spatial microsimulation modelling: Estimating the value of achieving good ecological status under the EU Water Framework Directive across catchments

Abstract

The empirical findings regarding the transfer validity of benefit transfer methods for environmental policy evaluation have been mixed. In this paper the value function from a contingent valuation exercise that estimates the value to the Irish general public of achieving good ecological status, as specified in the Water Framework Directive, are transferred to a spatial microsimulated population within individual water management units (WMUs) across Ireland. The welfare estimates from this novel value function based transfer approach are compared against the results from previous primary valuation studies in one of the WMUs and transfer errors are found to be low. The proposed spatial microsimulation value transfer approach controls for the heterogeneous distribution of populations across the WMUs and for the fact that the willingness to pay will vary according to an individual’s geographic proximity to the water body within each catchment and with the current ecological status of the WMU.