Value of Traffic Externalities from Attribute-Based Stated Choice: Route Choice Experiment
Abstract
The increasing rate of motorization in major urban centers in Asia is having severe impacts on local social and physical environments. Sustainability principles call for consideration of these traffic impacts, which include congestion, air and noise pollution, road safety, and urban decay, in the evaluation of urban development programs and projects. This study aims to contribute to the scarce literature on valuing nonmonetary external costs of traffic in developing countries through the attribute-based stated choice method measuring willingness to pay for route environment improvements. A web-based stated preference route choice survey was conducted regarding private work trips in metro Manila, Philippines, to value the welfare derived from changes in the quality of road and roadside environments. The authors estimated and compared values from specifications of fixed and random parameter logit. This study shows that estimates are sensitive to model specification, particularly if the attributes have significant preference heterogeneity and covariance. The values of significant attributes affecting utility, which include the value of percentage improvement in air quality, the value of percentage reduction in noise, and the risk value from a traffic fatality, are presented and compared.
Get full access to this article
View all access and purchase options for this article.
References
1. Neglected Global Epidemics: Three Growing Threats. The World Health Report. The World Health Organization, Geneva, Switzerland, 2003.
2. Murphy J. and Delucchi M. A. Review of Some of the Literature on the Social Cost of Motor-Vehicle Use. Institute of Transportation Studies, University of California, Davis, 1996.
3. Rennings K. Hohmeyer O. and Ottinger R. L. Social Costs and Sustainable Mobility: Strategies and Experiences in Europe and the United States. Physica-Verlag, New York, Mannheim and Heidelberg, Germany, 2000.
4. Delucchi M. A. The Annualized Social Cost of Motor-Vehicle Use in the U.S., 1990–1991: Summary of Theory, Data, Methods and Results. Institute of Transportation Studies, University of California, Davis, 1998.
5. Schreyer C. Schneider C. Maibach M. Rothengatter W. Doll C. and Schmedding D. External Cost of Transport: An Update. INFRAS/IWW, Zurich, Switzerland, 2004.
6. Baumol W. J. and Oates W. E. The Theory of Environmental Policy, 2nd ed. Cambridge University Press, Cambridge, United Kingdom, 1988.
7. Arsenio E. Bristow A. L. and Wardman M. Stated Choice Valuations of Traffic Related Noise. In Transportation Research Part D: Transport and Environment, Vol. 11, No. 1 2006, pp. 15–31.
8. Iraguen P. and de Dios Ortuzar J. Willingness-to-Pay for Reducing Fatal Accident Risk in Urban Areas: An Internet-Based Web Page Stated Preference Survey. Accident Analysis & Prevention, Vol. 36, No. 4 2004, pp. 513–524.
9. Wardman M. and Bristow A. L. Traffic-Related Noise and Air Quality Valuations: Evidence From Stated Preference Residential Choice Models. Transportation Research Part D: Transport and Environment, Vol. 9, No. 1 2004, pp. 1–27.
10. Saelensminde K. Stated Choice Valuation of Urban Traffic Air Pollution and Noise. Transportation Research Part D: Transport and Environment, Vol. 4, No. 1 1999, pp. 13–27.
11. Adamowicz W. Louviere J. and Swait J. Introduction to Attribute-Based Stated Choice Methods. National Oceanic and Atmospheric Administration, Washington, D.C., 1998.
12. Metro Manila Urban Transportation Integration Study. Japan International Cooperation Agency, Tokyo, 1998.
13. Roth G. and Villoria O. G. Jr. Finances of Commercialized Urban Road Network Subject to Congestion Pricing. In Transportation Research Record 1747, TRB, National Research Council, Washington, D.C., 2004, pp. 29–35.
14. Larssen S. Gram F. Hagen L. O. Jansen H. Olsthoorn X. Lesaca R. Anglo E. Torres E. B. Subida R. D. and Fransisco H. A. Urban Air Quality Management Strategy in Asia (URBAIR). Report 26302 (Shah J. and Nagpal T., eds.). International Bank for Reconstruction and Development and the World Bank, Washington, D.C., 1996.
15. Fabian H. G. and Vergel K. N. Analysis of Air Pollution Exposure of Individuals in the Road Environment. Journal of the Eastern Asia Society for Transportation Studies, Vol. 4, No. 5 2001, pp. 55–70.
16. Krupnick A. Morgenstern R. Fisher C. Rolfe K. Logarta J. and Rufo B. Air Pollution Control Policy Options for Metro Manila. Resources for the Future, Washington, D.C., 2003.
17. de Leon M. R. Cal P. C. and Sigua R. G. Estimation of Socio-Economic Cost of Road Accidents in Metro Manila. Journal of the Eastern Asia Society for Transportation Studies, Vol. 6, 2005, pp. 3183–3198.
18. Louviere J. J. Hensher D. A. and Swait J. D. Stated Choice Methods: Analysis and Applications. Cambridge University Press, Cambridge, United Kingdom, 2000.
19. McFadden D. Rationality for Economists? Journal of Risk and Uncertainty, Vol. 19, No. 1–3, 1999, pp. 73–105.
20. McFadden D. Johnson M. and Reid F. Travel Demand Forecasting Study. Institute of Urban and Regional Development, University of California, Berkeley, 1973.
21. Brownstone D. Bunch D. S. and Train K. Joint Mixed Logit Models of Stated and Revealed Preferences for Alternative-Fuel Vehicles. Transportation Research Part B: Methodological, Vol. 34, No. 5 2000, pp. 315–338.
22. Train K. Discrete Choice Methods with Simulation. Cambridge University Press, Cambridge, United Kingdom, 2003.
23. Heiner R. A. The Origin of Predictable Behavior. American Economic Review, No. 73, 1983, pp. 560–595.
24. Swait J. and Adamowicz W. Choice Environment, Market Complexity, and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice. Organizational Behavior and Human Decision Processes, Vol. 86, No. 2 2001, pp. 141–167.
25. Hess S. Bierlaire M. and Polak J. W. Estimation of Value of Travel-Time Savings Using Mixed Logit Models. Transportation Research Part A: Policy and Practice, Vol. 39, No. 2–3, 2005, pp. 221–236.
26. Bierlaire, M. BIOGEME: A Free Package for the Estimation of Discrete Choice Models. Proc., 3rd Swiss Transport Research Conference, Monte Verita, Ascona, Switzerland, 2003.
27. Vassanadumrongdee S. and Matsuoka S. Risk Perceptions and Value of a Statistical Life for Air Pollution and Traffic Accidents: Evidence from Bangkok, Thailand. Journal of Risk and Uncertainty, Vol. 30, No. 3 2005, pp. 261–287.
28. Kan H. and Chen B. Particulate Air Pollution in Urban Areas of Shanghai, China: Health-Based Economic Assessment. Science of the Total Environment, Vol. 322, No. 1–3, 2004, pp. 71–79.
29. Alberini A. Cropper M. Fu T. T. Krupnick A. Liu J. A. Shaw D. and Harrington W. Valuing Health Effects of Air Pollution in Developing Countries: The Case of Taiwan. Journal of Environmental Economics and Management, Vol. 34, No. 2 1997, pp. 107–126.
Cite article
Cite article
Cite article
OR
Download to reference manager
If you have citation software installed, you can download article citation data to the citation manager of your choice
Information, rights and permissions
Information
Published In
Article first published: January 2006
Issue published: January 2006
Authors
Metrics and citations
Metrics
Journals metrics
This article was published in Transportation Research Record: Journal of the Transportation Research Board.
VIEW ALL JOURNAL METRICSArticle usage*
Total views and downloads: 22
*Article usage tracking started in December 2016
Altmetric
See the impact this article is making through the number of times it’s been read, and the Altmetric Score.
Learn more about the Altmetric Scores
Articles citing this one
Receive email alerts when this article is cited
Web of Science: 0
Crossref: 3
- Assessing consumer preferences for Plug-in Hybrid Electric Vehicle (PH...
- Consensus in factors affecting landscape preference: A case study base...
- Providing information to respondents in complex choice studies: A surv...
Figures and tables
Figures & Media
Tables
View Options
Get access
Access options
If you have access to journal content via a personal subscription, university, library, employer or society, select from the options below:
loading institutional access options
Alternatively, view purchase options below:
Purchase 24 hour online access to view and download content.
Access journal content via a DeepDyve subscription or find out more about this option.
