Environmental Economics

Aggregation Problems in Benefits Estimation: A Simulation Approach

Researchers used a simulation model to investigate the magnitude of the problems caused in using accepted methods of benefits transfer to estimate benefits for recreation sites. The three types of errors that are addressed are those caused by: 1) using national level studies as the basis for regional benefit estimates, 2) using regional benefits as the basis for national benefits, and 3) using average aggregate resource-availability measures as explanatory variables in benefit estimation in either national or regional studies. Researchers used a simulation model (RECSIM) to generate "data" on the pre-pollution control situation versus after pollution control situation. The results were used as a benchmark from which to compare the results of various aggregation practices. In the report, the discrepancies between the "true" results and the results from the aggregation practices are discussed, and conclusions are drawn.

  • Keywords

    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Benefits Transfer
    Environmental Media:
    f. Multimedia
    Vaughan, William J.
    Mullahy, John
    Hewitt, Julie A.
    Hazilla, Michael
    Russell, Clifford S.
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Study Purpose:
    Methodology Development & Evaluation
    Inventory Record #: EE-0161
  • Participating Organizations

    Research Organization:

    Resources for the FutureAddress: 1616 P Street, NW
    City: Washington State: DC ZIP: 20036
    Phone: Fax:
    Funding Organization:
    Environmental Protection Agency, Office of Policy, Planning and Evaluation, Office of Policy AnalysisAddress:
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
  • Report Details
    Number of Pages:
    Grant/Contract #:
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