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Application of Willingness-to-Pay Methods to Value Transport Externalities in Less Developed Countries

Author

Listed:
  • Juan de Dios Ortúzar

    (Department of Transport Engineering, Pontificia Universidad Católica de Chile, Santiago, Chile)

  • Luis A Cifuentes

    (Department of Industrial and Systems Engineering, Pontificia Universidad Católica de Chile, Santiago, Chile)

  • Huw C W L Williams

    (Department of City and Regional Planning, Cardiff University, Cardiff, Wales)

Abstract

In this paper we report on two applications of the willingness-to-pay (WTP) approach to valuing transport externalities in Santiago, Chile. The first involves a contingent valuation study of mortality risk due in part to pollution-related causes, and the second, a stated preference study for valuing the reduction of risk from road fatalities. It is concluded that the approaches, and particularly that based on stated choice methods, offer practical and consistent methods of establishing unit values in higher-income developing countries. The unit values derived from the WTP methods appear to justify a greater allocation of resources to safety and pollution countermeasures compared with those derived from more traditional approaches.

Suggested Citation

  • Juan de Dios Ortúzar & Luis A Cifuentes & Huw C W L Williams, 2000. "Application of Willingness-to-Pay Methods to Value Transport Externalities in Less Developed Countries," Environment and Planning A, , vol. 32(11), pages 2007-2018, November.
    • Handle: RePEc:sae:envira:v:32:y:2000:i:11:p:2007-2018
    DOI: 10.1068/a3324
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    References listed on IDEAS

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    1. Stavros Georgiou & Dale Whittington & David Pearce & Dominic Moran, 1997. "Economic Values and the Environment in the Developing World," Books, Edward Elgar Publishing, number 1163.
    2. Krupnick, Alan J. & Alberini, Anna & Cropper, Maureen L. & Simon, Nathalie B. & Itaoka, Kenshi & Akai, Makoto, 1999. "Mortality Risk Valuation for Environmental Policy," Discussion Papers 10882, Resources for the Future.
    3. Peter Abelson, 1996. "Project Appraisal and Valuation of the Environment," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37474-4.
    4. Peter Abelson, 1996. "Valuation Methods for the Environment," Palgrave Macmillan Books, in: Project Appraisal and Valuation of the Environment, chapter 4, pages 57-87, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

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    2. Salanova Grau, Josep Maria & Konstantinidou, Maria & Boufidis, Neofytos & Aifandopoulou, Georgia, 2022. "Estimation of value-of-time and a comparison of an ex ante and an ex post willingness to pay for shared transport services in Thessaloniki," Research in Transportation Economics, Elsevier, vol. 92(C).
    3. Marcela Parada-Contzen & Felipe Vásquez-Lavín, 2019. "An analysis of economic incentives to encourage organ donation: evidence from Chile," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-18, December.
    4. Veisten, Knut, 2007. "Willingness to pay for eco-labelled wood furniture: Choice-based conjoint analysis versus open-ended contingent valuation," Journal of Forest Economics, Elsevier, vol. 13(1), pages 29-48, May.
    5. Cravioto, Jordi & Yamasue, Eiji & Okumura, Hideyuki & Ishihara, Keiichi N., 2013. "Road transport externalities in Mexico: Estimates and international comparisons," Transport Policy, Elsevier, vol. 30(C), pages 63-76.
    6. Agata Jazdzik-Osmolska, 2021. "Willingness to Pay for Road Safety Improvements in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 96-117.
    7. Noor-E-Sabiha & Sanzidur Rahman, 2018. "Environment-Smart Agriculture and Mapping of Interactions among Environmental Factors at the Farm Level: A Directed Graph Approach," Sustainability, MDPI, vol. 10(5), pages 1-17, May.

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