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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
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    References listed on IDEAS

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    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.
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    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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    Citations

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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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