Are consumers willing to pay to let cars drive for them? Analyzing response to autonomous vehicles

Autonomous vehicles use sensing and communication technologies to navigate safely and efficiently with little or no input from the driver. These driverless technologies will create an unprecedented revolution in how people move, and policymakers will need appropriate tools to plan for and analyze the large impacts of novel navigation systems. In this paper we derive semiparametric estimates of the willingness to pay for automation. We use data from a nationwide online panel of 1260 individuals who answered a vehicle-purchase discrete choice experiment focused on energy efficiency and autonomous features. Several models were estimated with the choice microdata, including a conditional logit with deterministic consumer heterogeneity, a parametric random parameter logit, and a semiparametric random parameter logit. We draw three key results from our analysis. First, we find that the average household is willing to pay a significant amount for automation: about $3500 for partial automation and $4900 for full automation. Second, we estimate substantial heterogeneity in preferences for automation, where a significant share of the sample is willing to pay above $10,000 for full automation technology while many are not willing to pay any positive amount for the technology. Third, our semiparametric random parameter logit estimates suggest that the demand for automation is split approximately evenly between high, modest and no demand, highlighting the importance of modeling flexible preferences for emerging vehicle technology.     

Consumers’ willingness to pay for alternative fuel vehicles: A comparative discrete choice analysis between the US and Japan

This paper conducts a comparative discrete choice analysis to estimate consumers’ willingness to pay (WTP) for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) on the basis of the same stated preference survey carried out in the US and Japan in 2012. We also carry out a comparative analysis across four US states. We find that on average US consumers are more sensitive to fuel cost reductions and alternative fuel station availability than are Japanese consumers. With regard to the comparative analysis across the four US states, consumers’ WTP for a fuel cost reduction in California is considerably greater than in the other three states. We use the estimates obtained in the discrete choice analysis to examine the EV/PHEV market shares under several scenarios. In a base case scenario with relatively realistic attribute levels, conventional gasoline vehicles still dominate both in the US and Japan. However, in an innovation scenario with a significant purchase price reduction, we observe a high penetration of alternative fuel vehicles both in the US and Japan. We illustrate the potential use of a discrete choice analysis for forward-looking policy analysis, with the future opportunity to compare its predictions against actual revealed choices. In this case, increased purchase price subsidies are likely to have a significant impact on the market shares of alternative fuel vehicles.     

Can value capture work in a car dependent city? Willingness to pay for transit access in Perth,Western Australia

This paper investigates the impact of transit on urban land markets in the highly car dependent corridors of Perth with a focus on where new fast rail transit services have recently been built. It determines people’s willingness to pay for transit access within different pedestrian catchments for each of the corridors based on hedonic price modelling using land value data on over 460,000 households. The case study uses cross sectional and panel data hedonic price modelling methodology for the calculation of willingness to pay for transit. It finds that land market increases of up to 40% can be achieved, and is particularly relevant to car dependent cities looking to capture the financial and economic value created to build transit extensions or entirely new systems, thus making a strong case for value capture funding of transit projects into car dependent suburbs and the potential for density increases near stations.     

The accuracy of proxy responses in a stated choice setting: A re-examination and some controversial conclusions

Data is typically gathered from an individual respondent who represents the group or the household. This individual is often identified as the “primary decision maker” and is asked to provide responses as a proxy for the group given that the cost of interviewing each member individually is impractical and/or expensive. The collection of joint preferences is rarely undertaken, with the use of proxy responses not uncommon in travel behaviour research. Under such a framework, there exists an assumption that the primary decision maker has perfect knowledge of other group member preferences, and bargaining behaviour, and is able to synthesise this information when providing a response on their behalf. The validity of such an assumption however remains an open question, with recent research calling the reliability of proxy responses into account (Bateman and Munro, 2009). In this paper, using three models estimated in willingness to pay space, we examine the accuracy of proxy responses in a stated choice experiment. We find that there is overlap between a proxy response and the own preferences of the individual providing the proxy choice, but while the proxy responses fail to represent the full preference heterogeneity that exists in the actual choices made by individuals, the proxy responses in aggregate provide a suitable replacement for actual data, subject to a number of caveats.     

Not bored yet - Revisiting respondent fatigue in stated choice experiments

Stated choice surveys are used extensively in the study of choice behaviour across many different areas of research, notably in transport. One of their main characteristics in comparison with most types of revealed preference (RP) surveys is the ability to capture behaviour by the same respondent under varying choice scenarios. While this ability to capture multiple choices is generally seen as an advantage, there is a certain amount of unease about survey length. The precise definition about what constitutes a large number of choice tasks however varies across disciplines, and it is not uncommon to see surveys with up to twenty tasks per respondent in some areas. The argument against this practice has always been one of reducing respondent engagement, which could be interpreted as a result of fatigue or boredom, with frequent reference to the findings of Bradley and Daly (1994) who showed a significant drop in utility scale, i.e. an increase in error, as a respondent moved from one choice experiment to the next, an effect they related to respondent fatigue. While the work by Bradley and Daly has become a standard reference in this context, it should be recognised that not only was the fatigue part of the work based on a single dataset, but the state-of-the-art and the state-of-practice in stated choice survey design and implementation has moved on significantly since their study. In this paper, we review other literature and present a more comprehensive study investigating evidence of respondent fatigue across a larger number of different surveys. Using a comprehensive testing framework employing both Logit and mixed Logit structures, we provide strong evidence that the concerns about fatigue in the literature are possibly overstated, with no clear decreasing trend in scale across choice tasks in any of our studies. For the data sets tested, we find that accommodating any scale heterogeneity has little or no impact on substantive model results, that the role of constants generally decreases as the survey progresses, and that there is evidence of significant attribute level (as opposed to scale) heterogeneity across choice tasks.     

Hypothetical bias in Stated Choice Experiments: Is it a problem? And if so,how do we deal with it?

The extent to which Stated Choice (SC) experiments suffer from hypothetical bias continues to be a controversial topic in the literature. This research provides further evidence in this debate by examining the existence of hypothetical bias in a transport-related SC experiment. Data for this research were sourced from a University of Sydney study exploring the effect of exposure-based charging on motorist behaviour. The sample included 148 Sydney motorists who were recruited to take part in the 10-week GPS driving field study (Revealed Preference/RP data). In addition, participants were also required to complete an SC survey which was designed to mimic the RP decision context in order to capture what participants indicated they would do as opposed to what participants actually did in reaction to the charging regime.The current state of practice for measuring hypothetical bias in the literature is to compare aggregate differences in model outcomes using SC and RP data sources. Aggregate analysis is limited in its scope and does not allow for the calculation of the prevalence of hypothetical bias (i.e., how many participants are affected by hypothetical bias). This research is uniquely structured to allow for individual categorisation of hypothetical bias by comparing SC and RP data from the same sample for the direct purpose of investigating the prevalence of hypothetical bias. Furthermore, the extent to which mitigation techniques (cheap talk and certainty scales) influence hypothetical bias is also explored. The findings from this research show that the SC model estimates are prone to hypothetical bias and that the mitigation techniques have potential to compensate for this inherent bias.     

Forecasting electricity demand of electric vehicles by analyzing consumers’ charging patterns

The spread of electric vehicles (EVs) and their increasing demand for electricity has placed a greater burden on electricity generation and the power grid. In particular, the problem of whether to expand the electricity power stations and distribution facilities due to the construction of EV charging stations is emerging as an immediate issue. To effectively meet the demand for additional electricity while ensuring the stability of the power grid, there is a need to accurately predict the charging demands for EVs. Therefore, this study estimates the changes in electricity charging demand based on consumer preferences for EVs, charging time of day, and types of electric vehicle supply equipment (EVSE) and elucidates the matters to be considered for constructing EV infrastructure. The results show that consumers mainly preferred charging during the evening. However, when we considered different types of EVSEs (public and private) in the analysis, people preferred to charge at public EVSEs during the day. During peak load time, people tended to prefer charging using fast public EVSEs, which shows that consumers considered the tradeoffs between the full charge time and the price for charging. Based on these findings, this study provides key political implications for policy makers to consider in taking preemptive measures to adjust the electricity supply infrastructure.     

Toll product preferences and implications for alternative payment options and going cashless

There has been a great deal of research on deriving estimates of the value of travel time savings (VTTS) as a way of converting travel time benefits of toll roads relative to free routes into monetary units, the major user benefit in the development of forecasts of traffic and hence revenue streams. By contrast there has been almost no consideration given to identifying the role that various tollroad products play in establishing preferences for toll routes over non-tolled routes. Increasingly tollroads give users the option to pay by cash at a toll booth, by electronic tolling or by a pre- or post-paid debit and credit account system involving vehicle identification. The efficiency gained by electronic tolling for both the users and the operator have resulted in moves in many jurisdictions to eliminate cash collection entirely (or not introduce it when introducing a new tolled road facility), and to introduce a range of pre- and post-payment options. This has been accompanied by a growing move to distance-based charging in some contexts which is more cumbersome to structure with a cash option. This paper investigates current and potential travellers’ preferences for a range of toll products and how much individual’s are willing to pay for very specific toll products. Data from a stated choice experiment is used in a mixed logit model to establish the role that toll products play in the context of offered times and costs of alternative routes, in choosing between alternative ways of paying for the use of tolled routes.

Analysis of the effect of charging needs on battery electric vehicle drivers’ route choice behaviour: A case study in the Netherlands

Electric travelling appears to dominate the transport sector in the near future due to the needed transition from internal combustion vehicles (ICV) towards Electric Vehicles (EV) to tackle urban pollution. Given this trend, investigation of the EV drivers’ travel behaviour is of great importance to stakeholders including planners and policymakers, for example in order to locate charging stations. This research explores the Battery Electric Vehicle (BEV) drivers route choice and charging preferences through a Stated Preference (SP) survey. Collecting data from 505 EV drivers in the Netherlands, we report the results of estimating a Mixed Logit (ML) model for those choices. Respondents were requested to choose a route among six alternatives: freeways, arterial ways, and local streets with and without fast charging. Our findings suggest that the classic route attributes (travel time and travel cost), vehicle-related variables (state-of-charge at the origin and destination) and charging characteristics (availability of a slow charging point at the destination, fast charging duration, waiting time in the queue of a fast-charging station) can influence the BEV drivers route choice and charging behaviour significantly. When the state-of-charge (SOC) at the origin is high and a slow charger at the destination is available, routes without fast charging are likely to be preferred. Moreover, local streets (associated with slow speeds and less energy consumption) could be preferred if the SOC at the destination is expected to be low while arterial ways might be selected when a driver must recharge his/her car during the trip via fast charging.     

Willingness to accept longer commutes for better salaries: Understanding the differences within and between couples

This paper reports on an analysis aiming to understand differences across individual people in their willingness to accept increased commuting time in return for higher salary, using Hierarchical Bayes (HB) analysis of a dataset collected in Sweden. We find that socio-demographic and attitudinal differences are significant in explaining the variations in values of time for individuals, in particular income, who drives when carpooling and hours worked per week. Additionally we also examine the values of individuals when their choices also impact on the salary and commute of their partner, finding that incomes, income differentials, driving behaviour when carpooling, division of housework and car user decisions significantly explain the values assigned to others and variations in an individual’s own values once their partner is affected. The overall richness of the results reflect the benefits that posterior analysis can bring, and highlight the computational efficiency of Bayesian methods in producing such conditionals at an individual level.     

Estimating the willingness to pay and value of risk reduction for car occupants in the road environment

In recent years there has been a re-focus on the valuation of a statistical life from the ex post or human capital method to an ex ante willingness to pay (WTP) approach. This is in part a recognition that we may have been undervaluing the cost of fatalities and injuries to society associated with crashes, but also a strong belief in the need to focus on establishing the amount, ex ante, that individuals are willing to pay to reduce the risk of exposure to circumstances that might lead to death or degree of injury on the road network. This study has developed a framework in which to identify the degree of preference heterogeneity in willingness to pay by individuals who are drivers or passengers in cars to avoid being killed or injured. A stated choice experiment approach is developed. The empirical setting is a choice of route for a particular trip that a sample of individuals periodically undertakes in Australia. The particular trip is described in enough detail to provide the respondent with a familiar market environment, providing all the relevant background information required for making a decision. Mixed logit models are estimated to obtain the marginal (dis)utilities associated with each influence on the choice amongst the attribute packages offered in the stated choice scenarios. These estimates are used to obtain the WTP distributions for fatality and injury avoidance, which are then aggregated to obtain estimates of the value of risk reduction (VRR), of which the fatality class is also known as the value of a statistical life (VSL).