Using Spatial Microsimulation techniques in the Aggregation of Environmental Benefit Values: An Application to Corncrake Conservation on Irish Farmland

Citation

Hynes S, Hanley N & O'Donoghue C (2007) Using Spatial Microsimulation techniques in the Aggregation of Environmental Benefit Values: An Application to Corncrake Conservation on Irish Farmland. ENVECON 2007 - Applied Environmental Economics Conference - UN Network of Environmental Economists -, 23.03.2007-23.03.2007. http://www.eftec.co.uk/2007/envecon-2007

Abstract
This paper considers the use of spatial microsimulation techniques in the growing area of Benefits Transfer. Benefits transfer involves the results of existing environmental valuation studies being applied to different policy contexts such as alternative populations or environmental sites. The spatial microsimulation model developed in this paper uses a combinational optimatisation technique called simulated annealing to match the Irish Census of Agriculture data to a Contingent Valuation Survey that contains information on Irish farmers' willingness to pay (WTP) to have the corncrake restored as a common sight in the Irish countryside. We then use this matched farm survey and Census information to produce small area population environmental benefit microdata estimates for the year 2005. These figures are then aggregated to get a total value figure for the farming community of Corncrake conservation in Ireland and compared to figures derived using more standard approaches to calculating aggregate environment benefit values.