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Eco-driving? A discrete choice experiment on valuation of car attributes

Author

Listed:
  • Högberg, Martina

    () (Swedish Energy Agency)

Abstract

To elicit the value that car consumers place upon environmental concerns when purchasing a car, a certain type of Discrete Choice Modelling called Choice Experiment was used. The Choice Experiment includes the four car attributes safety, carbon dioxide emissions, acceleration and annual cost. The survey was sent to a random sample of 1500 people in Sweden between 25 and 50 years of age in October 2006. The data collected was incorporated in a binomial logit model from which the coefficients of the utility function for cars were estimated. Both the estimated values of Willingness to Pay and the Marginal Rates of Substitution gave indications that the private goods safety and acceleration are higher valued than a genuine public bad such as carbon dioxide emissions. The result also showed that the design of the Choice Experiment can have impact on the values obtained.

Suggested Citation

  • Högberg, Martina, 2007. "Eco-driving? A discrete choice experiment on valuation of car attributes," Working Papers 2007:13, Swedish National Road & Transport Research Institute (VTI).
  • Handle: RePEc:hhs:vtiwps:2007_013
    as

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    File URL: http://www.transportportal.se/SWoPEc/Hogberg_LU_VTI.pdf
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    References listed on IDEAS

    as
    1. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    2. Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
    3. McIntosh, E. & Ryan, M., 2002. "Using discrete choice experiments to derive welfare estimates for the provision of elective surgery: Implications of discontinuous preferences," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 367-382, June.
    4. Atkinson, Scott E & Halvorsen, Robert, 1990. "The Valuation of Risks to Life: Evidence from the Market for Automobiles," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 133-136, February.
    5. Dreyfus, Mark K & Viscusi, W Kip, 1995. "Rates of Time Preference and Consumer Valuations of Automobile Safety and Fuel Efficiency," Journal of Law and Economics, University of Chicago Press, vol. 38(1), pages 79-105, April.
    6. Ryan, Mandy & Wordsworth, Sarah, 2000. "Sensitivity of Willingness to Pay Estimates to the Level of Attributes in Discrete Choice Experiments," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(5), pages 504-524, November.
    7. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Willingness to Pay; Discrete Choice Experiment; Environmental Valuation;

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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    1. Studies on the automobile industry

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