In search of valid results in a complex economic environment: The potential of meta-analysis and value transfer

Abstract

The rapidly increasing dissemination of scientific results exhibits features of complex systems and brings also to light (seemingly) inconsistencies among research findings. At the same time, there is a fast growing interest in comparative studies and related research tools such as metaanalysis and value transfer. Recently, several studies have been published in the economic literature with the aim to test the performance of value transfer in a direct way. The results from previously independently undertaken studies are then compared with the results generated by value transfer: one of the independent studies is chosen as a study site and serves as a benchmark for value transfer, while the other site is treated as the policy site. Distinct studies show that the values obtained for the policy site via value transfer do not necessarily comply with the results obtained from the independently undertaken study at that site. This paper will offer a critical methodological contribution to the discovery of sources of difficulties underlying the application of value transfer and the creation of new knowledge. The paper offers new insights by considering value transfer in the light of modern quantitative economic analysis as well as a formal framework for the applicability of value transfer in economic research. Throughout the paper, simple cases will serve as illustrations for our arguments.

Pesticide risk valuation in empirical economics: a comparative approach

“…To settle this discussion, the benefit transfer -or value transfer -procedure acts as a link among the different techniques, since it 'borrows' the monetary values from completed valuation studies for use in unexplored contexts (Bal and Nijkamp, 2001). Although its application remains controversial and has been debated by economists, it is fair to note that uncertainty in the transfer exercise usually originates from both the monetary valuation and the scientific data.…”

“…In this sense, debating the legitimacy of this premise is futile, since valuation is a means of measuring public preferences for environmental resources rather than a direct valuation of the resources. Moreover, using quantitative results enables us to employ, whenever budget and technical constraints require it, the benefit transfer procedure for inferring monetary values for an original case study from complete valuations applied in similar but different contexts (see Bal and Nijkamp, 2001;Brouwer and Spaninks, 1999;Brouwer, 2000, Navrud andBergland, 2001). …”

The spatial transferability of parameters in a gravity model of commuting flows

“…To to this, several studies from different regions and countries should be conducted. Over time, meta-analyses can be conducted to provide more definitive guidance for practitioners (Zamparini and Reggiani, 2007;Bal and Nijkamp, 2001). …”

The Values of Natural and Constructed Wetlands: A Meta-Analysis

“…Meta-analysis has been extensively used in environmental economics as a tool to synthesize the findings of primary valuation studies by means of a rigorous statistical analysis (Bal and Nijkamp 2001). Best-practice guidelines for meta-analysis were developed (Stanley 2005;Nelson and Kennedy 2008) in order to deal with potential issues related to the heterogeneity of the environmental resources and economic instruments considered (Smith and Pattanayak 2002), selection bias (Hoehn 2006), heteroscedasticity, and correlation between observations .…”