IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v46y2012i3p549-559.html
   My bibliography  Save this article

Freeway drivers’ willingness-to-pay for a distance-based toll rate

Author

Listed:
  • Jou, Rong-Chang
  • Chiou, Yu-Chiun
  • Chen, Ke-Hong
  • Tan, Hao-I

Abstract

This paper applies the contingent valuation method to investigate and estimate the toll rate that freeway drivers are willing-to-pay (WTP) for each unit of distance they travel, after switching from per-entry based to distance-based tolling system. Due to a large portion of respondents who are unwilling to pay a toll at all, we adopt the spike model to avoid estimation errors. The estimation results show that average willingness to pay toll is TWD1Note: 30.04 Taiwanese Dollars (TWD) was equivalent to $1 USD (October, 2011).1 0.86/km, which can be refined further to TWD 0.81/km for short distance travelers, TWD 0.93/km for medium distance travelers, and TWD 0.97/km for long distance travelers. Additionally, the WTP toll rate of short distance travelers is significantly different on public holidays but not during peak hours. In contrast, the WTP toll rates of medium and long distance travelers significantly different during peak hours but not on public holidays.

Suggested Citation

  • Jou, Rong-Chang & Chiou, Yu-Chiun & Chen, Ke-Hong & Tan, Hao-I, 2012. "Freeway drivers’ willingness-to-pay for a distance-based toll rate," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 549-559.
    • Handle: RePEc:eee:transa:v:46:y:2012:i:3:p:549-559
    DOI: 10.1016/j.tra.2011.11.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856411001819
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2011.11.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Seung-Hoon Yoo & Seung-Jun Kwak, 2002. "Using a spike model to deal with zero response data from double bounded dichotomous choice contingent valuation surveys," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 929-932.
    2. Seung-Hoon Yoo & Chul-Oh Shin & Seung-Jun Kwak, 2006. "Inconvenience cost of spam mail: a contingent valuation study," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 933-936.
    3. Rong-Chang Jou & Yuan-Chan Wu & Ke-Hong Chen, 2011. "Analysis of the environmental benefits of a motorcycle idling stop policy at urban intersections," Transportation, Springer, vol. 38(6), pages 1017-1033, November.
    4. Salvador Del Saz-Salazar & Leandro Garcia-Menendez, 2001. "Willingness to Pay for Environmental Improvements in a Large City Evidence from The Spike Model and From a Non-Parametric Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 103-112, October.
    5. Hu, Wuyang, 2006. "Use of Spike Models in Measuring Consumers' Willingness to Pay for Non-GM Oil," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(3), pages 1-14, December.
    6. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    7. Olszewski, Piotr & Xie, Litian, 2005. "Modelling the effects of road pricing on traffic in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 755-772.
    8. Aurelia Bengochea-Morancho & Ana Fuertes-Eugenio & Salvador Saz-Salazar, 2005. "A comparison of empirical models used to infer the willingness to pay in contingent valuation," Empirical Economics, Springer, vol. 30(1), pages 235-244, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chiou, Yu-Chiun & Jou, Rong-Chang & Kao, Chu-Yun & Fu, Chiang, 2013. "The adoption behaviours of freeway electronic toll collection: A latent class modelling approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 266-280.
    2. Kuo, Chung-Wei & Jou, Rong-Chang, 2018. "Air passengers’ willingness to pay for counter check-in services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 203-215.
    3. José Holguín-Veras & Iván Sánchez-Díaz & Benjamin Reim, 2016. "ETC adoption, time-of-travel choice, and comprehensive policies to enhance time-of-day pricing: a stated preference investigation," Transportation, Springer, vol. 43(2), pages 273-299, March.
    4. Jou, Rong-Chang & Huang, Guei-Lang, 2014. "Willingness to pay price for tolls and on-board units for short-distance freeway users who normally avoid toll boots," Transport Policy, Elsevier, vol. 31(C), pages 10-18.
    5. Glavic, Drazenko & Milos, Mladenovic & Luttinen, Tapio & Cicevic, Svetlana & Trifunovic, Aleksandar, 2017. "Road to price: User perspectives on road pricing in transition country," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 79-94.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jou, Rong-Chang & Huang, Guei-Lang, 2014. "Willingness to pay price for tolls and on-board units for short-distance freeway users who normally avoid toll boots," Transport Policy, Elsevier, vol. 31(C), pages 10-18.
    2. Jou, Rong-Chang & Chen, Yi-Wen, 2013. "Drivers’ acceptance of delay time at different levels of service at signalised intersections," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 54-66.
    3. Rong-Chang Jou & Yuan-Chan Wu & Ke-Hong Chen, 2011. "Analysis of the environmental benefits of a motorcycle idling stop policy at urban intersections," Transportation, Springer, vol. 38(6), pages 1017-1033, November.
    4. Rong-Chang Jou . & Ke-Hong Chen, 2015. "How Much Will I Pay for Freeway Real-Time Traffic Information?," Sustainability, MDPI, vol. 7(10), pages 1-12, September.
    5. Rong-Chang Jou & Tzu-Ying Chen, 2015. "External Costs to Parties Involved in Highway Traffic Accidents: The Perspective of Highway Users," Sustainability, MDPI, vol. 7(6), pages 1-23, June.
    6. Kuo, Chung-Wei & Jou, Rong-Chang, 2018. "Air passengers’ willingness to pay for counter check-in services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 107(C), pages 203-215.
    7. Pere Riera & Raúl Brey & Guillermo Gándara, 2008. "Bid design for non-parametric contingent valuation with a single bounded dichotomous choice format," Hacienda Pública Española / Review of Public Economics, IEF, vol. 186(3), pages 43-60, October.
    8. Kwak, So-Yoon & Yoo, Seung-Hoon, 2015. "The public’s value for developing ocean energy technology in the Republic of Korea: A contingent valuation study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 432-439.
    9. Lim, Kyoung-Min & Lim, Seul-Ye & Yoo, Seung-Hoon, 2014. "Estimating the economic value of residential electricity use in the Republic of Korea using contingent valuation," Energy, Elsevier, vol. 64(C), pages 601-606.
    10. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2017. "Public's willingness to pay a premium for bioethanol in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 101(C), pages 20-27.
    11. Juan Ignacio Pulido-Fernández & Yaiza López-Sánchez, 2016. "Are Tourists Really Willing to Pay More for Sustainable Destinations?," Sustainability, MDPI, vol. 8(12), pages 1-20, November.
    12. Song, Tae-Ho & Lim, Kyoung-Min & Yoo, Seung-Hoon, 2015. "Estimating the public’s value of implementing the CO2 emissions trading scheme in Korea," Energy Policy, Elsevier, vol. 83(C), pages 82-86.
    13. Koo, A Mi & Kim, Ju-Hee & Yoo, Seung-Hoon, 2022. "Household willingness to pay for a smart water metering and monitoring system: The case of South Korea," Utilities Policy, Elsevier, vol. 79(C).
    14. Gelo, Dambala & Turpie, Jane, 2021. "Bayesian analysis of demand for urban green space: A contingent valuation of developing a new urban park," Land Use Policy, Elsevier, vol. 109(C).
    15. Kim, Hyo-Jin & Lee, Hye-Jeong & Yoo, Seung-Hoon, 2018. "Are South Korean people willing to pay for official development assistance for building renewable power plants in developing countries?," Energy Policy, Elsevier, vol. 118(C), pages 626-632.
    16. Kim, Hyo-Jin & Lim, Seul-Ye & Yoo, Seung-Hoon, 2017. "Is the Korean public willing to pay for a decentralized generation source? The case of natural gas-based combined heat and power," Energy Policy, Elsevier, vol. 102(C), pages 125-131.
    17. Glenk, Klaus & Fischer, Anke, 2010. "Insurance, prevention or just wait and see? Public preferences for water management strategies in the context of climate change," Ecological Economics, Elsevier, vol. 69(11), pages 2279-2291, September.
    18. Marija Opačak & Erda Wang, 2019. "Estimating Willingness to Pay for a Future Recreational Park Atop the Current Jakuševec Landfill in Zagreb, Croatia," Sustainability, MDPI, vol. 11(21), pages 1-16, October.
    19. Lim, Hea-Jin & Yoo, Seung-Hoon, 2014. "Train travel passengers' willingness to pay to offset their CO2 emissions in Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 526-531.
    20. Kim, Ju-Hee & Yoo, Seung-Hoon, 2020. "South Koreans’ perspective on assisting the power supply to North Korea: Evidence from a contingent valuation," Energy Policy, Elsevier, vol. 139(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:46:y:2012:i:3:p:549-559. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.