JSM 2004 - Toronto

Abstract #301805

This is the preliminary program for the 2004 Joint Statistical Meetings in Toronto, Canada. Currently included in this program is the "technical" program, schedule of invited, topic contributed, regular contributed and poster sessions; Continuing Education courses (August 7-10, 2004); and Committee and Business Meetings. This on-line program will be updated frequently to reflect the most current revisions.

To View the Program:
You may choose to view all activities of the program or just parts of it at any one time. All activities are arranged by date and time.

The views expressed here are those of the individual authors
and not necessarily those of the ASA or its board, officers, or staff.

Back to main JSM 2004 Program page
Activity Number: 20
Type: Contributed
Date/Time: Sunday, August 8, 2004 : 2:00 PM to 3:50 PM
Sponsor: Section on Statistics and the Environment
Abstract - #301805
Title: The Power Prior as a Tool for Improving the Benefit Transfer in Environmental Valuation
Author(s): Ulrike G. Lehr*+
Companies: University of Hohenheim
Address: Institut fuer VWL, Stuttgart, International, 70593, Germany
Keywords: contingent valuation method ; Bayesian analysis ; power prior ; benefit transfer ; environmental economics ; reclamation
Abstract:

The contingent valuation method (CVM) is a popular method in environmental economics to elicit people's willingness to pay for a positive change in environmental quality or the prevention of a negative change. However, the most incentive compatible elicitation method yields right- and left-censored survival-type data and requires large samples and expensive surveys to obtain valid results. Therefore, the benefit transfer approach has been suggested, which assigns results from past studies to a new policy site. Unfortunately, most of the suggested methods in the past failed. Recently, environmental economists started to look into using Bayesian methods as a tool for the benefit transfer. This paper uses the power prior for the first time on CVM data to incorporate historical data. Hence, it combines the results of previously done studies with the results of a small on site study. A full-scale CVM study on the reclamation of open pit coal mining areas in East Germany is used as reference data and several datasets are used to construct the power prior. It can be shown that the Bayesian benefit transfer succeeds in reducing survey costs by large and facilitates cost-benefit analysis.

  • The address information is for the authors that have a + after their name.
  • Authors who are presenting talks have a * after their name.

Back to the full JSM 2004 program

JSM 2004 For information, contact jsm@amstat.org or phone (888) 231-3473. If you have questions about the Continuing Education program, please contact the Education Department.
Revised March 2004