Willingness-to-Pay Method to Estimate Effect of Accessibility on Property Prices
Abstract
The economic evaluation and the financing of transportation projects require comprehensive estimation and determination of all transportation-related external costs. The effect of accessibility on property values and the hedonic price of environmental attributes related to the transportation system are among the most important external effects. In this study, the willingness to pay (WTP) for improved accessibility and environmental quality was determined by the use of a stated preference (SP) technique. With SP data collected in Tehran, Iran, a multinomial logit model was developed, and WTP was estimated with this model. Because the WTP for environmental attributes was estimated with qualitative measures, a fuzzy transformation was used to estimate the WTP for a unit increase in environmental quality.
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Article first published online: January 1, 2014
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