Benefit Transfer and the Economic Value of Air Quality Revisited

Developing countries still lack valuation studies for several environmental goods. In this paper we present the results of an international benefit transfer exercise applied to air quality, considering the perspective of developing countries. Our aim is to show the importance to employ transferred values in cost-benefit analysis for the particular case of air pollution in urban areas of developing countries. Following the recommendations found in the literature, a protocol was created for the value transfer process. The results show a high discrepancy between actual and transferred values. Besides, other findings question the use of the benefit transfer technique for developing countries.