IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v154y2024icp61-72.html
   My bibliography  Save this article

On ferry users’ willingness to pay for improving environmental quality: A case study for the Canary Islands

Author

Listed:
  • Saz-Salazar, Salvador del
  • Tovar, Beatriz

Abstract

This study, using a contingent valuation framework, provides an initial assessment of the environmental benefits derived from the hypothetical adoption of a low-carbon fuel path, and onshore power supply, by the ferry sector in the Canary Islands in compliance with the FuelEU Maritime Initiative. To this end, a sample of 502 respondents was asked about their willingness to pay (WTP) for the increase in their well-being resulting from improvements in air quality and noise pollution. Special attention was paid to the problem of zero responses and the possible presence of self-selection due to protest responses. The results show that about 75% of the respondents expressed their WTP extra for a single ferry ticket between the most populated cities in the archipelago, with an estimated mean WTP of €13.12. This would represent a 33% increase in current ferry tickets. Aggregating the mean WTP across the population affected, has resulted in a conservative estimate of the total benefits derived from this policy of €65.9 million over a 30-year horizon time, and €94.2 million over a longer horizon time (100 years). In short, this study aims to fill an existing research gap while providing a quantitative basis for decision-making in densely populated port cities connected by ferry.

Suggested Citation

  • Saz-Salazar, Salvador del & Tovar, Beatriz, 2024. "On ferry users’ willingness to pay for improving environmental quality: A case study for the Canary Islands," Transport Policy, Elsevier, vol. 154(C), pages 61-72.
    • Handle: RePEc:eee:trapol:v:154:y:2024:i:c:p:61-72
    DOI: 10.1016/j.tranpol.2024.05.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X24001483
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2024.05.023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Tichavska, Miluše & Tovar, Beatriz, 2015. "Port-city exhaust emission model: An application to cruise and ferry operations in Las Palmas Port," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 347-360.
    2. Haab, Timothy C. & McConnell, Kenneth E., 1997. "Referendum Models and Negative Willingness to Pay: Alternative Solutions," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 251-270, February.
    3. Kevin J. Boyle & Hugh F. MacDonald & Hsiang-tai Cheng & Daniel W. McCollum, 1998. "Bid Design and Yea Saying in Single-Bounded, Dichotomous-Choice Questions," Land Economics, University of Wisconsin Press, vol. 74(1), pages 49-64.
    4. Salvador Saz-Salazar & Miguel A. García-Rubio & Francisco González-Gómez & Andrés J. Picazo-Tadeo, 2016. "Managing Water Resources Under Conditions of Scarcity: On Consumers’ Willingness to Pay for Improving Water Supply Infrastructure," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(5), pages 1723-1738, March.
    5. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
    6. BK. Johnson & JC. Whitehead, 2000. "Value of public goods from sports stadiums: the CVM approach," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 48-58, January.
    7. Clinch, J Peter & Murphy, Anthony, 2001. "Modelling Winners and Losers in Contingent Valuation of Public Goods: Appropriate Welfare Measures and Econometric Analysis," Economic Journal, Royal Economic Society, vol. 111(470), pages 420-443, April.
    8. Garcia, Serge & Harou, Patrice & Montagné, Claire & Stenger, Anne, 2009. "Models for sample selection bias in contingent valuation: Application to forest biodiversity," Journal of Forest Economics, Elsevier, vol. 15(1-2), pages 59-78, January.
    9. John Loomis & Thomas Brown & Beatrice Lucero & George Peterson, 1997. "Evaluating the Validity of the Dichotomous Choice Question Format in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(2), pages 109-123, September.
    10. Schlapfer, Felix, 2008. "Contingent valuation: A new perspective," Ecological Economics, Elsevier, vol. 64(4), pages 729-740, February.
    11. David Hoyos & Petr Mariel, 2010. "Contingent Valuation: Past, Present and Future," Prague Economic Papers, Prague University of Economics and Business, vol. 2010(4), pages 329-343.
    12. Tovar, Beatriz & Hernández, Rubén & Rodríguez-Déniz, Héctor, 2015. "Container port competitiveness and connectivity: The Canary Islands main ports case," Transport Policy, Elsevier, vol. 38(C), pages 40-51.
    13. Clive L. Spash, 2006. "Non-Economic Motivation for Contingent Values: Rights and Attitudinal Beliefs in the Willingness To Pay for Environmental Improvements," Land Economics, University of Wisconsin Press, vol. 82(4), pages 602-622.
    14. Tamás Bartus, 2005. "Estimation of marginal effects using margeff," Stata Journal, StataCorp LLC, vol. 5(3), pages 309-329, September.
    15. Andres Laasma & Riina Otsason & Ulla Tapaninen & Olli-Pekka Hilmola, 2022. "Evaluation of Alternative Fuels for Coastal Ferries," Sustainability, MDPI, vol. 14(24), pages 1-13, December.
    16. Ole Bonnichsen & S�ren B�ye Olsen, 2016. "Correcting for non-response bias in contingent valuation surveys concerning environmental non-market goods: an empirical investigation using an online panel," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(2), pages 245-262, February.
    17. Jonas Sonnenschein & Nora Smedby, 2019. "Designing air ticket taxes for climate change mitigation: insights from a Swedish valuation study," Climate Policy, Taylor & Francis Journals, vol. 19(5), pages 651-663, May.
    18. José‐María Montero & Gema Fernández‐Avilés & Román Mínguez, 2018. "Estimating environment impacts on housing prices," Environmetrics, John Wiley & Sons, Ltd., vol. 29(5-6), August.
    19. Cooper Joseph C., 1993. "Optimal Bid Selection for Dichotomous Choice Contingent Valuation Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 25-40, January.
    20. 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.
    21. James Heckman, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    22. Bishop, Richard C. & Heberlein, Thomas A., 1979. "Measuring Values Of Extramarket Goods: Are Indirect Measures Biased?," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 277818, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    23. Miluše Tichavska & Beatriz Tovar, 2017. "External costs from vessel emissions at port: a review of the methodological and empirical state of the art," Transport Reviews, Taylor & Francis Journals, vol. 37(3), pages 383-402, May.
    24. Tichavska, Miluše & Tovar, Beatriz, 2015. "Environmental cost and eco-efficiency from vessel emissions in Las Palmas Port," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 126-140.
    25. Jerry Hausman, 2012. "Contingent Valuation: From Dubious to Hopeless," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 43-56, Fall.
    26. ben Brahim, Till & Wiese, Frauke & Münster, Marie, 2019. "Pathways to climate-neutral shipping: A Danish case study," Energy, Elsevier, vol. 188(C).
    27. Tichavska, Miluše & Tovar, Beatriz & Gritsenko, Daria & Johansson, Lasse & Jalkanen, Jukka Pekka, 2019. "Air emissions from ships in port: Does regulation make a difference?," Transport Policy, Elsevier, vol. 75(C), pages 128-140.
    28. 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.
    29. Elisabetta Strazzera & Margarita Genius & Riccardo Scarpa & George Hutchinson, 2003. "The Effect of Protest Votes on the Estimates of WTP for Use Values of Recreational Sites," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(4), pages 461-476, August.
    30. Petrolia, Daniel R. & Bhattacharjee, Sanjoy & Hudson, Darren & Herndon, Cary W., 2010. "Do Americans want ethanol? A comparative contingent-valuation study of willingness to pay for E-10 and E-85," Energy Economics, Elsevier, vol. 32(1), pages 121-128, January.
    31. Richard C. Bishop & Thomas A. Heberlein, 1979. "Measuring Values of Extramarket Goods: Are Indirect Measures Biased?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 926-930.
    32. Yan, Ran & Wang, Shuaian & Psaraftis, Harilaos N., 2021. "Data analytics for fuel consumption management in maritime transportation: Status and perspectives," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    2. Cho, Seong-Hoon & Yen, Steven T. & Bowker, J.M. & Newman, David H., 2008. "Modeling Willingness to Pay for Land Conservation Easements: Treatment of Zero and Protest Bids and Application and Policy Implications," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 267-285, April.
    3. David Worden & Getu Hailu & Kate Jones & Yu Na Lee, 2022. "The effects of bundling on livestock producers' valuations of environmentally friendly traits available through genomic selection," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 263-286, December.
    4. Miguel Ángel Tobarra-González, 2015. "A new recoding method for treating protest responses in contingent valuation studies using travel cost data," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 58(8), pages 1479-1489, August.
    5. Lee, Gunwoo & Kim, Soo-Yeob & Lee, Min-Kyu, 2015. "Economic evaluation of vessel traffic service (VTS): A contingent valuation study," Marine Policy, Elsevier, vol. 61(C), pages 149-154.
    6. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    7. José L Oviedo & Pablo Campos & Alejandro Caparrós, 2022. "Contingent valuation of landowner demand for forest amenities: application in Andalusia, Spain," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(3), pages 615-643.
    8. Ngouhouo Poufoun, Jonas & Abildtrup, Jens & Sonwa, Dénis Jean & Delacote, Philippe, 2016. "The value of endangered forest elephants to local communities in a transboundary conservation landscape," Ecological Economics, Elsevier, vol. 126(C), pages 70-86.
    9. Naghmeh Niroomand & Glenn P. Jenkins, 2018. "Estimation of Households’ and Businesses’ Willingness to Pay for Improved Reliability of Electricity Supply in Nepal," Development Discussion Papers 2018-05, JDI Executive Programs.
    10. Rodríguez, Elsa Mirta M. & Lacaze, María Victoria & Lupín, Beatriz, 2007. "Willingness to pay for organic food in Argentina: evidence from a consumer survey," Nülan. Deposited Documents 1300, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    11. Pere Riera & Raúl Brey & Guillermo Gándara, 2008. "Bid design for non-parametric contingent valuation with a single bounded dichotomous choice format," Hacienda Pública Española / Review of Public Economics, IEF, vol. 186(3), pages 43-60, October.
    12. Smith, V. Kerry & Mansfield, Carol, 1998. "Buying Time: Real and Hypothetical Offers," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 209-224, November.
    13. Ryan, Mandy, 1998. "Valuing psychological factors in the provision of assisted reproductive techniques using the economic instrument of willingness to pay," Journal of Economic Psychology, Elsevier, vol. 19(2), pages 179-204, April.
    14. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, March.
    15. Luchini, Stéphane & Watson, Verity, 2013. "Uncertainty and framing in a valuation task," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 204-214.
    16. Salvador Saz-Salazar & Miguel García-Rubio & Francisco González-Gómez & Andrés Picazo-Tadeo, 2016. "Managing Water Resources Under Conditions of Scarcity: On Consumers’ Willingness to Pay for Improving Water Supply Infrastructure," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(5), pages 1723-1738, March.
    17. Magnus Söderberg & David Barton, 2014. "Marginal WTP and Distance Decay: The Role of ‘Protest’ and ‘True Zero’ Responses in the Economic Valuation of Recreational Water Quality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 389-405, November.
    18. Sivashankar, Pathmanathan & Weerahewa, Jeevika & Pushpakumara, Gamini & Galagedara, Lakshman, 2016. "An estimation of the willingness to pay for biodiesel: a pilot study of diesel consumers," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(01), pages 1-19, April.
    19. Czajkowski, Mikołaj & Zawojska, Ewa & Meade, Norman & da Motta, Ronaldo Seroa & Welsh, Mike & Ortiz, Ramon Arigoni, 2024. "On the inference about a willingness-to-pay distribution using contingent valuation data," Ecological Economics, Elsevier, vol. 222(C).
    20. Joseph C. Cooper & Michael Hanemann & Giovanni Signorello, 2002. "One-and-One-Half-Bound Dichotomous Choice Contingent Valuation," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 742-750, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:154:y:2024:i:c:p:61-72. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.