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Assessing the Option Value of a Publicly Provided Service: The Case of Local Transport

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  • Roberto Roson

    (Dipartimento di Scienze Economiche, Università Cà Foscari di Venezia, Cannaregio 873, Venezia, Italy, roson@unive.it.)

Abstract

This paper presents a theoretical and empirical study of the problem of valuation of local public transport services. A contingent valuation exercise, considering two case studies in northern Italy, is illustrated. This serves as a basis for an econometric analysis aimed at highlighting the role of socioeconomic variables in the determination of the willingness to pay, through public funds, for the subsidisation of public transport services. It is argued that social preferences for the provision of a public transport service cannot be directly deducted from observable market behaviour and that the preferred supply level of transport capacity weakly depends on individual consumption levels, whereas the perception of mobility problems (possibly generated by experience) and the characteristics of social networks (especially the family) are likely to be much more important.

Suggested Citation

  • Roberto Roson, 2001. "Assessing the Option Value of a Publicly Provided Service: The Case of Local Transport," Urban Studies, Urban Studies Journal Limited, vol. 38(8), pages 1319-1327, July.
    • Handle: RePEc:sae:urbstu:v:38:y:2001:i:8:p:1319-1327
    DOI: 10.1080/00420980120061043
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    References listed on IDEAS

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    1. Craig, Steven G., 1987. "The impact of congestion on local public good production," Journal of Public Economics, Elsevier, vol. 32(3), pages 331-353, April.
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    3. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-984, September.
    4. Brueckner, Jan K., 1981. "Congested public goods: The case of fire protection," Journal of Public Economics, Elsevier, vol. 15(1), pages 45-58, February.
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    7. Paul R. Portney, 1994. "The Contingent Valuation Debate: Why Economists Should Care," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 3-17, Fall.
    8. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
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    Cited by:

    1. Laird, James & Geurs, Karst & Nash, Chris, 2009. "Option and non-use values and rail project appraisal," Transport Policy, Elsevier, vol. 16(4), pages 173-182, August.
    2. Karen Lucas, 2012. "A critical assessment of accessibility planning for social inclusion," Chapters, in: Karst T. Geurs & Kevin J. Krizek & Aura Reggiani (ed.), Accessibility Analysis and Transport Planning, chapter 13, pages 228-242, Edward Elgar Publishing.
    3. Chang, Justin S., 2010. "Estimation of option and non-use values for intercity passenger rail services," Journal of Transport Geography, Elsevier, vol. 18(2), pages 259-265.
    4. Rogier Pennings & Bart Wiegmans & Tejo Spit, 2020. "Can We Have Our Cake and Still Eat It? A Review of Flexibility in the Structural Spatial Development and Passenger Transport Relation in Developing Countries," Sustainability, MDPI, vol. 12(15), pages 1-25, July.
    5. Xun Zheng & Tomio Miwa, 2019. "A Comparative Analysis on Residents’ Reservation Willingness for Bus Service Based on Option Price," Sustainability, MDPI, vol. 11(1), pages 1-12, January.
    6. Mataria, Awad & Giacaman, Rita & Khatib, Rana & Moatti, Jean-Paul, 2006. "Impoverishment and patients' "willingness" and "ability" to pay for improving the quality of health care in Palestine: An assessment using the contingent valuation method," Health Policy, Elsevier, vol. 75(3), pages 312-328, February.
    7. Paul Bennett, 2006. "Competing for the Island Lifeline: European Law, State Aid and Regional Public Services," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 953-966.
    8. Karel Martens, 2012. "A justice-theoretic exploration of accessibility measures," Chapters, in: Karst T. Geurs & Kevin J. Krizek & Aura Reggiani (ed.), Accessibility Analysis and Transport Planning, chapter 11, pages 195-210, Edward Elgar Publishing.

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