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


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


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

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    References listed on IDEAS

    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. 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.
    3. 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(03), December.
    4. 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.
    5. 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.
    6. 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.
    7. Hu, Wuyang, 2006. "Use of Spike Models in Measuring Consumers' Willingness to Pay for Non-GM Oil," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(03), pages 525-538, December.
    8. 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.
    9. 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.
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    Cited by:

    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. 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.
    3. repec:eee:transa:v:107:y:2018:i:c:p:203-215 is not listed on IDEAS
    4. repec:eee:transa:v:105:y:2017:i:c:p:79-94 is not listed on IDEAS
    5. 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.


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