Introduction to benefit transfer methods

This chapter provides an introductory overview of benefit transfer methods. It begins with a discussion of the different types of benefit transfer (such as unit value transfer and benefit function transfer), including a review of these different approaches and the relative advantages and disadvantages of each. This is followed by a summary of foundations in welfare economics and valuation. Included in this methodological introduction are a discussion of stated and revealed preference valuation and how the results from each may be used for benefit transfer. Following this introductory material are discussions of the theoretical and infor-mational requirements for benefit transfer, the steps required to implement a benefit transfer, the challenges of scaling, and sources of data. The chapter concludes with brief discussions of transfer validity and reliability, advanced techniques for benefit transfer, and common problems and challenges.