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For whom the tunnel be tolled: A four-factor model for explaining willingness-to-pay tolls

  • Yusuf, Juita-Elena (Wie)
  • O’Connell, Lenahan
  • Anuar, Khairul A.
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    This research examines citizen acceptance of tolls and road pricing, and specifically focuses on determinants of the individual’s expressed willingness-to-pay tolls to use a tunnel express lane that would be free of traffic delays. We answer the research question “What factors influence citizens’ willingness-to-pay tolls” by empirically estimating a four factor model of willingness-to-pay: (a) direct benefit to the respondent; (b) relative cost over time; (c) community concern; and (d) political and environmental liberalism. We use data about citizen perceptions from the Life in Hampton Roads Survey, a survey of residents of Hampton Roads, Virginia. We find that willingness-to-pay is primarily driven and motivated by self-interest, through a balancing of benefit to cost relative to individual income and frequency of use. In addition, concern for the community also contributes to willingness-to-pay tolls. The individual’s perception of government’s trustworthiness, a reflection of political and environmental beliefs, also influences the extent to which an individual is willing to pay tolls.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0965856413002097
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    Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

    Volume (Year): 59 (2014)
    Issue (Month): C ()
    Pages: 13-21

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    Handle: RePEc:eee:transa:v:59:y:2014:i:c:p:13-21
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    1. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Differentiated Road Pricing, Express Lanes and Carpools: Exploiting Heterogeneous Preferences in Policy Design," Working Papers 050616, University of California-Irvine, Department of Economics, revised Mar 2006.
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