Estimating the value of risk reductions for car drivers when pedestrians are involved: a case study in Spain

We estimated the benefits associated with reducing fatal and severe injuries from traffic accidents using a stated choice experiment where choice situations were generated through a statistically efficient design. Specifically, the risk variables were defined as the expected annual number of vehicle car-users that suffered their death or were severely injured in a traffic accident. In addition, and differing from previous research, the number of pedestrians that died or were severely injured in traffic accidents per year was also included as a risk attribute in the choice experiment, to attempt at measuring drivers’ willingness to pay to reduce the risk of hitting pedestrians in a crash. The empirical setting was a choice of route for a particular trip that a sample of car drivers periodically undertakes in Tenerife, Spain. Models were estimated accounting for random taste heterogeneity and pseudo-panel data correlation. The median of the distribution of simulated parameters was used to obtain a representative measure for the monetary valuation of risk reductions. We found that the ratio between the values of reducing the risk of suffering a serious injury and that of reducing a fatality was approximately 18 %. Further, and quite novel, we also found that the value of reducing a pedestrian fatality was 39 % of the value of reducing a car occupant fatality.     

Analysing Demand for Suburban Trips: A Mixed RP/SP Model with Latent Variables and Interaction Effects

We analyse mode choice behaviour for suburban trips in the Grand Canary island using mixed revealed preference (RP)/stated preference (SP) information. The SP choice experiment allowed for interactions among the main policy variables: travel cost, travel time and frequency, and also to test the influence of latent variables such as comfort. It also led to discuss additional requirements on the size and sign of the estimated model parameters, to assess model quality when interactions are present. The RP survey produced data on actual trip behaviour and was used to adapt the SP choice experiment. During the specification searches we detected the presence of income effect and were able to derive willingness-to-pay measures, such as the subjective value of time, which varied among individuals. We also studied the systematic heterogeneity in individual tastes through the specification of models allowing for interactions between level-of-service and socio-economic variables. We concluded examining the sensitivity of travellers’ behaviour to various policy scenarios. In particular, it seems that contrary to political opinion, in a crowded island policies penalising the use of the private car seem to have a far greater impact in terms of bus patronage than policies implying direct improvements to the public transport service.     

Willingness to Pay for Airline Service Quality

Abstract

This paper looks at estimated valuations of some service‐quality attributes in an airline choice context using stated preferences methods. The analysis is based on information obtained in the most important route connecting the Canary Islands with the Iberian Peninsula: Gran Canaria–Madrid, and tries to contribute to the body of knowledge in this area, given the relatively few studies of the monetary valuations of air travel regarding level‐of‐service attributes. A feature of this analysis is the examination of variations in values according to different characteristics of the service, such as price, penalties for changes in the ticket, legroom, food, etc.; the currently experienced level of the attribute, and various socio‐economic factors that affect the characteristics of the trip and passengers. In addition, the important issue of added value regarding different attributes is addressed, obtaining the willingness‐to‐pay for different improvements of service quality. A further analysis is made about how taste heterogeneity (market segments) affects these values. Results from the stated preference experiment and the market value of some comparable service are also compared. Finally, the paper brings together evidence from other studies and compares them with the findings obtained herein.