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Estimating Benefits for Effective Enforcement of Speed Reduction from Dichotomous-Choice CV

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Author Info
Riccardo Scarpa
Kenneth Willis
Guy Garrod

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Abstract

We present an empirical estimation of the distribution of WTP foreffective speed restriction via implementation of local trafficcalming schemes. Random samples are drawn from the populations ofhouseholds (henceforth HHs) of three centres intersected by maintrunk roads with varying through traffic conditions. We estimatethe underlying WTP distributions from discrete-choice responsesto site-specific referendum contingent valuation studiesaccounting for zero-bidders. We then test the hypothesis ofdifferent distributions across villages. The statistical analysisconsists first of a parametric specification and then of atotally non-parametric one. Stated welfare changes for effectivespeed reduction are found to be sizeable and the parameters ofthe random utility models are plausibly related to differences inobjective speed measures across centres. The results appear toencourage the use of the referencum-CV method in the estimationof local public goods. In this case study the proposed publicproject would seem to pass the Kaldor-Hicks potentialcompensation test. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1013076219748
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 20 (2001)
Issue (Month): 4 (December)
Pages: 281-304
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Handle: RePEc:kap:enreec:v:20:y:2001:i:4:p:281-304

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  1. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November. [Downloadable!] (restricted)
  2. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May. [Downloadable!] (restricted)
  3. Trudy Ann Cameron & John Quiggin, 1992. "Estimation Using Contingent Valuation Data From a "Dichotomous Choice with Follow-Up" Questionnaire," UCLA Economics Working Papers 653, UCLA Department of Economics. [Downloadable!]
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  4. An, Mark Yuying & Ayala, Roberto A., 1996. "Nonparametric Estimation of a Survivor Function with Across-Interval-Censored Data," Working Papers 96-02, Duke University, Department of Economics. [Downloadable!]
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  5. Mark Yuying An & Roberto Ayala, 1996. "A Mixture Model of Willingness to Pay Distributions," Econometrics 9611002, EconWPA. [Downloadable!]
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  6. Deacon, Robert T & Shapiro, Perry, 1975. "Private Preference for Collective Goods Revealed Through Voting on Referenda," American Economic Review, American Economic Association, vol. 65(5), pages 943-55, December. [Downloadable!] (restricted)
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  1. Jesús Barreiro & Mercedes Sánchez & Montserrat Viladrich-Grau, 2005. "How much are people willing to pay for silence? A contingent valuation study," Applied Economics, Taylor and Francis Journals, vol. 37(11), pages 1233-1246, June. [Downloadable!] (restricted)
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