Spatial and geographic aspects of benefit transfer

This chapter discusses methodological issues associated with the spatial nature of values for environmental goods and services and implications for valuation and benefit transfer (BT). It is designed to complement Chap. 13, which discusses the importance of a spatial framework for analysis of ecosystem services , and Chap. 20, which demonstrates the use of geographic information systems (GIS) for value mapping and BT. The chapter provides a broad perspective on the potential causes of spatial heterogeneity in environmental values, with particular attention to the relevance of this heterogeneity for stated preference (SP) valuation and the transfer of resulting welfare estimates. This includes discussions of spatial variability in the provision of ecosystem services, distance decay and substitution effects, and additional spatial patterns in willingness to pay (WTP). The chapter also suggests different ways that spatial variations such as these may be accommodated to support reliable benefit transfer.