Introducing Willingness‐to‐pay for Noise Changes into Transport Appraisal: An Application of Benefit Transfer

Abstract

Numerous research studies have elicited willingness‐to‐pay values for transport‐related noise. However, in many industrialized countries including the UK, noise costs and benefits are still not incorporated into appraisals for most transport projects and policy changes. This paper describes the actions recently taken in the UK to address this issue, comprising: primary research based on the city of Birmingham; an international review of willingness‐to‐pay evidence; the development of values using benefit transfers over time and locations; and integration with appraisal methods. Amongst the main findings are: that the willingness‐to‐pay estimates derived for the UK are broadly comparable with those used in appraisal elsewhere in Europe; that there is a case for a lower threshold at 45 dB(A)Leq,18h rather than the more conventional 55 dB(A); and that values per dB(A) increase with the noise level above this threshold. There are significant issues over the valuation of rail versus road noise, the neglect of non‐residential noise and the valuation of high noise levels in different countries. Conclusions are drawn regarding the feasibility of noise valuation based on benefit transfers in the UK and elsewhere, and future research needs in this field are discussed.     

Passengers’ willingness to pay for airport ground access time savings

There are cases when passengers are willing to pay a premium to reduce the travel time, in particular when the trip has to be made. This paper aims to provide insight into factors that determine passengers’ willingness to pay to reduce travel time for their ground access to an airport. A methodology is developed that comprises two steps: the identification of the passengers with zero willingness to pay and from the rest the estimation of the additional price they are willing to pay to reduce their travel time. For the first step a Probit model was formulated and for the second a linear regression model. To this purpose, data has been collected employing stated preference from passengers at the Athens International Airport. It has been found that a high percentage of passengers have zero willingness to pay, and of the remaining ones those using public transport have a significant willingness to pay to reduce access travel time. The methodology and the models are structured in such a way that their transferability to any airport environment is possible, thus providing a useful tool for decisions relating to airport ground access measures.     

Analyzing loss aversion and diminishing sensitivity in a freight transport stated choice experiment

Choice behaviour might be determined by asymmetric preferences whether the consumers are faced with gains or losses. This paper investigates loss aversion and diminishing sensitivity, and analyzes their implications on willingness to pay and willingness to accept measures in a reference pivoted choice experiment in a freight transport framework. The results suggest a significant model fit improvement when preferences are treated as asymmetric, proving both loss aversion and diminishing sensitivity. The implications on willingness to pay and willingness to accept indicators are particular relevant showing a remarkable difference between symmetric and asymmetric model specifications. Not accounting for loss aversion and diminishing sensitivity, when present, produces misleading results and might affect significantly the policy decisions.     

Drivers’ willingness-to-pay to reduce travel time: evidence from the San Diego I-15 congestion pricing project

The adoption of congestion pricing depends fundamentally upon drivers’ willingness to pay to reduce travel time during the congested morning peak period. Using revealed preference data from a congestion pricing demonstration project in San Diego, we estimate that willingness to pay to reduce congested travel time is higher than previous stated preference results. Our estimate of median willingness to pay to reduce commute time is roughly $30 per hour, although this may be biased upward by drivers’ perception that the toll facility provides safer driving conditions. Drivers also use the posted toll as an indicator of abnormal congestion and increase their usage of the toll facility when tolls are higher than normal.     

Intention and willingness to pay for green freight transportation: An empirical examination

The objective of this paper is to explore what motivates consumer intention and willingness to pay for green transportation. The model is based on the theory of planned behavior and explains the relationship between consumer attitude, perceived behavioral control and peer pressure on intention and willingness to pay for a t-shirt that was transported using energy efficient fuel. Data from a survey of U.S. consumers is analyzed. Results suggest consumer attitude and peer pressure are positively associated with intention which is positively associated with willingness to pay. High levels of consumer attitude, perceived behavioral control and intention suggest a positive outlook for organizations investing in green transportation initiatives. Results also suggest a need for organizations and government to market and educate consumers and citizens about the positive implications of green transportation and using energy efficient fuel.     

A new probability statistical model for traffic noise prediction on free flow roads and control flow roads

A new traffic noise prediction approach based on a probability distribution model of vehicle noise emissions and achieved by Monte Carlo simulation is proposed in this paper. The probability distributions of the noise emissions of three types of vehicles are obtained using an experimental method. On this basis, a new probability statistical model for traffic noise prediction on free flow roads and control flow roads is established. The accuracy of the probability statistical model is verified by means of a comparison with the measured data, which has shown that the calculated results of L_eq, L₁₀, L₅₀, L₉₀, and the probability distribution of noise level occurrence agree well with the measurements. The results demonstrate that the new method can avoid the complicated process of traffic flow simulation but still maintain high accuracy for the traffic noise prediction.     

Using spike model to reduce traffic congestion and improve public transportation in Malaysia

In this study, passengers’ willingness to pay (WTP) for and willingness to accept (WTA) improved public transportation and shift to public transportation in Malaysia were examined. Specifically, this study aimed to determine the factors or transport attributes that affect passenger WTA and WTP to shift to public transportation. The adopted methodology was based on a contingent valuation (CV) survey, which was conducted on a representative sample of a cross section in residents of Kajang, in Malaysia. This CV primary survey elicited the demand of passengers for improved public transportation. The spike model was adopted to avoid estimation errors caused by a large percentage of respondents who were unwilling to pay and accept at all. The estimation results showed that the best reduction rate for both travel time and cost was 45% among other amounts that range from 15% to 75%. The best parking cost increment was US$0.30 and the average WTP is US$0.68.     

The Bid-rent Land Use Model of the simple,efficient, elegant,and effective model of land use and transportation

Integrated land use/transportation forecasting models add significant policy and infrastructure alternatives analysis capabilities to the urban planning process. The financial, time, and staff requirements to develop these models has put them beyond the reach of most small to medium sized urban areas. This paper presents the land use allocation submodel of the Simple, Efficient, Elegant, and Effective model of land use and transportation (SE³M), an integrated land use and transportation forecasting model founded upon Economic Base Theory and Bid-rent Theory. The Bid-rent Land Use Model (BLUM) is an agent based, spatial competition model utilizing unique utility curves for willingness to pay and incomes for budget constrained abilities to pay for each agent. The model structure, estimation, calibration, implementation, and validation are presented. With a single year of land use data available, the validation approach used the Kappa Index of Agreement to spatially check model outputs against base year control data while controlling for agreement by chance. The U.S. territory of Guam is used as the case study/proof of concept implementation for this model framework. Once calibrated, BLUM could solve the spatial competition problem on Guam in less than two minutes of processing time with over 90% accuracy.     

Aggregation of common-metric attributes in preference revelation and implications for willingness to pay

There is a growing interest in process heterogeneity in the way that individuals evaluate packages of attributes in real or hypothetical markets and make choices. We consider the role of the relative magnitude of pairs of attributes that are defined on a common metric (e.g., minutes or dollars), to look at the extent to which attributes might be added in preference revelation, in contrast to the commonly adopted single rule of compensatory behaviour. The focus is on a choice model specification that allows for different treatments of pairs of attributes across a sample, in contrast to studies that impose a single rule on all observations, and that does not require supplementary information on whether specific individuals claimed to have added up attributes; rather we structure a non-linear utility function that permits a probabilistic aggregation of each attribute. We translate this into a willingness to pay for travel time-savings for car commuters, in the context of tolling roads in Sydney, and contrast it with the results from the additive model, and a model where self-stated attribute processing information is taken into account. The empirical evidence suggests that mean willingness to pay increases when the addition rule is accounted for. This is a potentially important message for environmental applications where two or more attributes have a common metric.     

A dichotomous choice survey for quantifying option and non-use values of bus services in Korea

The total economic value for a transportation service consists of use, option, and non-use value. The use benefit is based on a traveler’s willingness to pay for usual consumption of the service. The optional value, on the other hand, is related to the possible use of the service for trips not yet anticipated or currently accommodated by other travel modes. The non-use value, however, is derived from the intrinsic merit of the service, even though a trip-maker never actually or potentially depends on the mode. A closed-ended contingent valuation method is considered for the quantification of the option and non-use values. A survey of single- and double-bounded dichotomous choices is conducted with a case study of South Korean bus operations. A logistic regression model and a survival analysis for the single- and double-bounded approaches, respectively, are applied. The estimation result is examined according to the statistical property required and the behavioral validity expected. In particular, three issues from the output are discussed. First, the results help to show the preferable framework between single- and double-bounded surveys for addressing an individual’s option and non-use values. Second, the differences in the absolute values of option and non-use values are compared. Thirdly, the relationship between trip-makers’ willingness to pay and the level of service of their primary travel modes are investigated. In conclusion, the summary of research and the possibilities for future studies are given.     

Exploring airline passengers’ willingness to pay for carbon offsets

This study examines airline passengers’ willingness to pay for carbon-offsets. Using the contingent valuation method of double-bounded dichotomous choice format and a survey of over 1000 Taiwanese passengers flying to countries in Asia, Europe, North America, and Oceania to gauge their willingness-to-pay for airline carbon-offsets. The results suggest that despite the trip characteristics and personal background, air travel passengers’ knowledge and perceptions of the carbon-offset scheme also greatly influence the stated willingness to pay.     

Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings

In recent years we have seen important extensions of logit models in behavioural research such as incorporation of preference and scale heterogeneity, attribute processing heuristics, and estimation of willingness to pay (WTP) in WTP space. With rare exception, however, a non-linear treatment of the parameter set to allow for behavioural reality, such as embedded risk attitude and perceptual conditioning of occurrence probabilities attached to specific attributes, is absent. This is especially relevant to the recent focus in travel behaviour research on identifying the willingness to pay for reduced travel time variability, which is the source of estimates of the value of trip reliability that has been shown to take on an increasingly important role in project appraisal. This paper incorporates, in a generalised non-linear (in parameters) logit model, alternative functional forms for perceptual conditioning (known as probability weighting) and risk attitude in the utility function to account for travel time variability, and then derives an empirical estimate of the willingness to pay for trip time variability-embedded travel time savings as an alternative to separate estimates of time savings and trip time reliability. We illustrate the richness of the approach using a stated choice data set for commuter choice between unlabelled attribute packages. Statistically significant risk attitude parameters and parameters underlying decision weights are estimated for multinomial logit and mixed multinomial logit models, along with values of expected travel time savings.     

Preferences for shared autonomous vehicles

Shared autonomous vehicles (SAVs) could provide inexpensive mobility on-demand services. In addition, the autonomous vehicle technology could facilitate the implementation of dynamic ride-sharing (DRS). The widespread adoption of SAVs could provide benefits to society, but also entail risks. For the design of effective policies aiming to realize the advantages of SAVs, a better understanding of how SAVs may be adopted is necessary. This article intends to advance future research about the travel behavior impacts of SAVs, by identifying the characteristics of users who are likely to adopt SAV services and by eliciting willingness to pay measures for service attributes. For this purpose, a stated choice survey was conducted and analyzed, using a mixed logit model. The results show that service attributes including travel cost, travel time and waiting time may be critical determinants of the use of SAVs and the acceptance of DRS. Differences in willingness to pay for service attributes indicate that SAVs with DRS and SAVs without DRS are perceived as two distinct mobility options. The results imply that the adoption of SAVs may differ across cohorts, whereby young individuals and individuals with multimodal travel patterns may be more likely to adopt SAVs. The methodological limitations of the study are also acknowledged. Despite a potential hypothetical bias, the results capture the directionality and relative importance of the attributes of interest.     

Electric vehicles and residential parking in an urban environment: Results from a stated preference experiment

This paper presents the results of a preference survey of 1545 respondents’ willingness to purchase electric vehicles (EVs) in Philadelphia. We pay particular attention to respondents’ willingness to pay for convenient charging systems and parking spaces. If the value of dedicated parking substantially outweighs the value of convenient charging systems, residential-based on-street charging systems are unlikely to ever be politically palatable. As expected, respondents are generally willing to pay for longer range, shorter charging times, lower operating costs, and shorter parking search times. For a typical respondent, a $100 per month parking charge decreases the odds of purchasing an EV by around 65%. Across mixed logit and latent class models, we find substantial variation in the willingness to pay for EV range, charge time, and ease of parking. Of note, we find two primary classes of respondents with substantially different EV preferences. The first class tends to live in multifamily housing units in central parts of the city and puts a high value on parking search time and the availability of on-street charging stations. The second class, whose members are likelier to be married, wealthy, conservative, and residing in single-family homes in more distant neighborhoods, are willing to pay more for EV range and charge time, but less for parking than the first group. They are also much likelier to consider purchasing EVs at all. We recommend that future research into EV adoption incorporate neighborhood-level features, like parking availability and average trip distances, which vary by neighborhood and almost certainly influence EV adoption.     

The university workers’ willingness to pay for commuting

Using a dynamic approach, employing data on job mobility, we demonstrate that university workers?? marginal willingness to pay for reducing commuting distance is about ?0.25 per kilometre travelled. This corresponds to a marginal willingness to pay for reducing commuting time of about 75?% of the net average hourly wage. For females, the willingness to pay is substantially higher than for males. It is also substantially higher for workers that work few hours per day, as predicted by theory.     

How flexible is flexible? Accounting for the effect of rescheduling possibilities in choice of departure time for work trips

In departure time studies it is crucial to ascertain whether or not individuals are flexible in their choices. Previous studies have found that individuals with flexible work times have a lower value of time for late arrivals. Flexibility is usually measured in terms of flexible work start time or in terms of constraints in arrival time at work. Although used for the same purpose, these two questions can convey different types of information. Moreover, constraints in departure time are often related not only to the main work activity, but to all daily activities. The objective of this paper is to investigate the effect of constraints in work and in other daily trips/activities on the willingness to shift departure time and the willingness to pay for reducing travel time and travel delay. We set up a survey to collect detailed data on the full 24-hour out-of-home activities and on the constraints for each of these activities. We then built a stated preference experiment to infer preferences on departure time choice, and estimated a mixed logit model, based on the scheduling model, to account for the effects of daily activity schedules and their constraints. Our results show that measuring flexibility in terms of work start time or constraints at work does not provide exactly the same information. Since one-third of the workers with flexible working hours in the survey indicated that they have restrictions on late work-arrival times, their willingness to pay will be overestimated (almost doubled) if flexibility information is asked only in terms of fixed/flexible working hours. This clearly leads to different conclusion in terms of demand sensitivity to reschedule to a later departure time. We also found that having other activities and constraints during the day increases the individuals’ willingness to pay to avoid being late at work, where the presence of constraints on daily activities other than work is particularly relevant for individuals with no constraints at work. The important impact of these findings is that if we neglect the presence of constraints, as is common practise in transport models, it will generally lead to biased value-of-time estimates. Results clearly show that the shift in the departure time, especially towards a late departure time, is strongly overestimated (the predicted shift is more than double) when the effect of non-work activities and their constraints is not accounted for.     

Modeling traffic noise in a mountainous city using artificial neural networks and gradient correction

Different regions have established traffic noise prediction models to adapt to their particular environmental characteristics. This paper aimed to develop a traffic noise prediction model for mountainous cities. In China, the traffic noise prediction model HJ 2.4-2009, which itself is based on the sound pressure level corrected for roadway gradients (RGs), has been receiving widespread acceptance. On the basis of the model in HJ 2.4-2009, the RG correction coefficient was proposed to modify the original model and a per-vehicle noise prediction model was built using a multilayer feedforward artificial neural network (ANN) model. The data collected from a municipal road of a hilly city, Chongqing, was used to train and validate the ANN model. The predictor variables comprised the per-vehicle noise value, vehicle type, vehicle velocity, and roadway gradient. The results showed that the modified HJ 2.4-2009 model incorporating the gradient correction coefficient achieved a significantly higher R² for mountainous cities than the original model. Besides, the ANN-based noise prediction model achieved considerable accuracy improvement over the empirical predictive equations.     

Random covariance heterogeneity in discrete choice models

In this paper, we extend the standard discrete choice modelling framework by allowing for random variations in the substitution patterns between alternatives across respondents, leading to increased model flexibility. The paper shows how such a Mixed Covariance model can be specified either with purely random variation or with a mixture of random and deterministic variation. Additionally, the model can be based on an underlying GEV or ECL structure. Finally, the model can be specified as a continuous mixture or as a discrete mixture. An application on Stated Preference data for the choice of departure time and travel mode shows that important gains in model performance can be obtained by allowing for random covariance heterogeneity. Furthermore, the approach leads to significant differences in the implied willingness to pay measures, and the substitution patterns between alternatives.     

Users’ perceptions and willingness to pay in interurban toll roads: identifying differences across regions from a nationwide survey in Spain

Users’ acceptability is considered one of the key drivers for the successful implementation of transport policy measures. This is especially crucial in the case of toll roads since they are financed through drivers’ contributions. Previous literature in this field has mainly focused on measuring users’ attitudes towards urban congestion pricing strategies. However limited research has been developed concerning interurban toll roads. Previous research shows that socioeconomic variables are not conclusive to explain users’ perceptions towards tolls. By contrast, other drivers such as regional differences seem to play a more important role, especially when charging conditions within the same nation greatly vary across regions. This paper analyzes regional differences in users’ attitudes within an asymmetrical distribution of the toll road network across regions. Based on a nationwide survey conducted to road users in interurban toll roads in Spain, we develop both a binomial logit and a censored regression (tobit) model to explore drivers’ perceptions and willingness to pay. The research concludes that users from regions with a more extensive tolled network generally show a more negative attitude towards charges, but not necessarily a lower willingness to pay. The paper also points out that an asymmetrical distribution of toll roads across regions may result in negative perceptions among those users perceiving to be unfairly treated when compared to citizens in other regions.     

Who will buy electric vehicles? Identifying early adopters in Germany

Electric vehicles (EVs) have noteworthy potential to reduce global and local emissions and are expected to become a relevant future market for vehicle sales. Both policy makers and car manufacturers have an interest to understand the first large EV user group, frequently referred to as ‘early adopters’. However, there are only a few empirical results available for this important group. In this paper, we analyse and discuss several empirical data sets from Germany, characterising this user group from both a user and a product perspective, i.e. who is willing to buy an EV and who should buy one. Our results show that the most likely group of private EV buyers in Germany are middle-aged men with technical professions living in rural or suburban multi-person households. They own a large share of vehicles in general, are more likely to profit from the economical benefits of these vehicles due to their annual vehicle kilometres travelled and the share of inner-city driving. They state a higher willingness to buy electric vehicles than other potential adopter groups and their higher socio-economic status allows them to purchase EVs. In contrast to this, inhabitants of major cities are less likely to buy EVs since they form a small group of car owners in general, their mileage is too low for EVs to pay off economically and they state lower interest and lower willingness to pay for EVs than other groups. Our results indicate that transport policy promoting EVs should focus on middle-aged men with families from rural and sub-urban cities as first private EV buyers.