RT Journal Article
SR Electronic
T1 A Combinatorial Optimization Approach to Nonmarket Environmental Benefit Aggregation via Simulated Populations
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 345
OP 362
DO 10.3368/le.86.2.345
VO 86
IS 2
A1 Hynes, Stephen
A1 Hanley, Nick
A1 O’Donoghue, Cathal
YR 2010
UL http://le.uwpress.org/content/86/2/345.abstract
AB This paper considers the use of a “combinatorial optimization” technique in the aggregation of environmental benefit values. Combinatorial optimization is used to statistically match population census data to a contingent valuation survey. The matched survey and census information is then used to produce regional and national total willingness-to-pay figures. These figures are then compared to figures derived using more standard approaches to calculating aggregate environment benefit values. The choice of aggregation approach is shown to have a major impact upon estimates of total benefits at a regional level, especially when the target population displays considerable heterogeneity across space. (JEL C14, Q51)