Calibrating Benefit Function Transfer to Assess the Conservation Reserve Program

Benefit transfer is a quick and inexpensive alternative to conducting an original study to determine economic value. Although this practice is attractive, it can result in biased welfare estimates. This paper proposes a method of calibrating benefit transfers in order to reduce this bias. An empirical example to determine the benefits of the Conservation Reserve Program on water-based recreation illustrates the potentially large biases that may result if the transfer is not calibrated