Estimating WTP for Speed Reduction from Dichotomous-Choice Cv Responses with Follow-Up: The Case of Rural Trunk Roads

34 Pages Posted: 15 Mar 2000

See all articles by Riccardo Scarpa

Riccardo Scarpa

University of Waikato - Management School

Kenneth G. Willis

CREAM, Centre for Research on Environmental Appraisal & Management, UK; University of Newcastle

Guy Garrod

Centre for Rural economy, Newcastle University

Date Written: September 1999

Abstract

We present an empirical estimation of the distribution of WTP for effective speed reduction via implementation of local traffic calming schemes. Random samples are drawn from the populations of households of three villages intersected by main trunk roads with varying through traffic conditions. We retrieve the underlying WTP distributions from discrete-choice responses to site-specific contingent valuation studies accounting for zero-bidders. We then test the hypothesis of different distributions across villages. The statistical analysis is first conducted by means of a parametric specification and then by a totally non-parametric one. Stated welfare changes for effective speed reduction are found to be sizeable and the parameters of the random utility models are related to differences in objective speed measures.

JEL Classification: D12, D62, C42, C35, C14

Suggested Citation

Scarpa, Riccardo and Willis, Kenneth G. and Garrod, Guy, Estimating WTP for Speed Reduction from Dichotomous-Choice Cv Responses with Follow-Up: The Case of Rural Trunk Roads (September 1999). FEEM Working Paper No. 73.99. Available at SSRN: https://ssrn.com/abstract=200596 or http://dx.doi.org/10.2139/ssrn.200596

Riccardo Scarpa (Contact Author)

University of Waikato - Management School ( email )

Hamilton
New Zealand

Kenneth G. Willis

CREAM, Centre for Research on Environmental Appraisal & Management, UK ( email )

University of Newcastle
NE1 7RU Newcastle Upon Tyne
United Kingdom

University of Newcastle

5 Barrack Road
Devonshire Building
NE1 7RU Newcastle upon Tyne, NE1 7RU
United Kingdom

Guy Garrod

Centre for Rural economy, Newcastle University ( email )

United Kingdom

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