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Eco-driving? A discrete choice experiment on valuation of car attributes

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Author Info
Högberg, Martina () (Swedish Energy Agency)
Abstract

To elicit the value that car consumers place upon environmental concerns when purchasing a car, a certain type of Discrete Choice Modelling called Choice Experiment was used. The Choice Experiment includes the four car attributes safety, carbon dioxide emissions, acceleration and annual cost. The survey was sent to a random sample of 1500 people in Sweden between 25 and 50 years of age in October 2006. The data collected was incorporated in a binomial logit model from which the coefficients of the utility function for cars were estimated. Both the estimated values of Willingness to Pay and the Marginal Rates of Substitution gave indications that the private goods safety and acceleration are higher valued than a genuine public bad such as carbon dioxide emissions. The result also showed that the design of the Choice Experiment can have impact on the values obtained.

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Publisher Info
Paper provided by Swedish National Road & Transport Research Institute (VTI) in its series Working Papers with number 2007:13.

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Length: 71 pages
Date of creation: 27 Sep 2007
Date of revision:
Handle: RePEc:hhs:vtiwps:2007_013

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Postal: VTI, Transport Economics, P.O. Box 6056, SE-171 06 Solna, Sweden
Phone: +46-13-20 40 00
Fax: +46-13-14 14 36
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Web page: http://www.vti.se/tek
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Related research
Keywords: Willingness to Pay Discrete Choice Experiment Environmental Valuation

Find related papers by JEL classification:
C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

This paper has been announced in the following NEP Reports:

This item is featured on the following reading lists:
  1. Studies on the automobile industry
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dreyfus, Mark K & Viscusi, W Kip, 1995. "Rates of Time Preference and Consumer Valuations of Automobile Safety and Fuel Efficiency," Journal of Law & Economics, University of Chicago Press, vol. 38(1), pages 79-105, April.
  2. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Blackwell Publishing, vol. 15(3), pages 435-62, July. [Downloadable!] (restricted)
  3. Alpizar, Francisco & Carlsson, Fredrik & Martinsson, Peter, 2001. "Using Choice Experiments for Non-Market Valuation," Working Papers in Economics 52, Göteborg University, Department of Economics. [Downloadable!]
  4. McIntosh, E. & Ryan, M., 2002. "Using discrete choice experiments to derive welfare estimates for the provision of elective surgery: Implications of discontinuous preferences," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 367-382, June. [Downloadable!] (restricted)
  5. Ryan, Mandy & Wordsworth, Sarah, 2000. "Sensitivity of Willingness to Pay Estimates to the Level of Attributes in Discrete Choice Experiments," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(5), pages 504-24, November. [Downloadable!] (restricted)
  6. Atkinson, Scott E & Halvorsen, Robert, 1990. "The Valuation of Risks to Life: Evidence from the Market for Automobiles," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 133-36, February. [Downloadable!] (restricted)
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