WEAI/AERE 2009 - Individual Paper Abstract
Title: The Recreational Value of Coral Reefs: A Classical and a Bayesian Approach to Meta-analytic Benefit Transfer
Author(s): Luz Londoño-Diaz, Department of Agricultural and Resource Economics. University of Connecticut, 1376 Storrs Road, Room 337, Storrs, CT 06269-4021 (860) 486-1929, fax (860) 486-1932, Luz.londono_diaz@uconn.edu ; Robert Johnston, Department of Economics, Clark University, rjohnston@clarku.edu (photo: via Luz Londoño-Diaz)
Abstract:
Meta-analytic benefit transfers for the recreational value of coral reefs have been shown to be problematic due to data limitations--in particular, small sample sizes and high inter-study heterogeneity. As a result, only tentative results have emerged. We show how results can be improved if the protocol for study selection is refined to maintain consistency in welfare measures, and if the statistical analysis is extended. We use classical statistical techniques and Bayesian methods. The newer Bayesian approach is proposed as a viable alternative, when the meta-regression model and associated metadata can be tailored to benefit transfer in a specific empirical policy context. Results indicate that the potential for benefit transfer is improved with the application of Bayesian techniques. These findings are informative for decision making and management of coral reefs, and they also provide guidance with respect to a number of methodological issues encountered in benefit transfer exercises more generally.