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Estimation of option and non-use values for intercity passenger rail services

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  • Chang, Justin S.

Abstract

This paper considers option and non-use values of intercity passenger rail services in Korea. The total economic value of a given transport service can be classified into use, option and non-use values, but other grouping rules can be applied, respectively. The use value is the consumer’s surplus from the actual ride of a specific mode. The option value, on the other hand, can be defined as a traveller’s willingness to pay for reserving a travel mode, which is not his or her main choice, as a standby alternative. Finally, the non-use value represents benefits that are not attributable to the actual use or option use, but to the vicarious, altruistic, functional and existing worth of a transport service. A random stated preference survey based on a double-bounded dichotomous choice is conducted. A survival model is applied to the data collected. Calculations are based on trip makers’ willingness to pay for option and non-use values, using the parameters of the estimated survival model. Some concluding remarks are also presented.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jotrge:v:18:y:2010:i:2:p:259-265
    DOI: 10.1016/j.jtrangeo.2009.06.009
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    References listed on IDEAS

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    1. 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.
    2. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
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    Cited by:

    1. Lee, Sunghoon & Burris, Mark W., 2018. "Estimating the Option Value of managed lanes," Research in Transportation Economics, Elsevier, vol. 70(C), pages 28-36.
    2. Borhan, Muhamad Nazri & Ibrahim, Ahmad Nazrul Hakimi & Miskeen, Manssour A. Abdulasalm, 2019. "Extending the theory of planned behaviour to predict the intention to take the new high-speed rail for intercity travel in Libya: Assessment of the influence of novelty seeking, trust and external inf," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 373-384.
    3. Justin Chang & Soo Cho & Beom Lee & Yonghwan Kim & Suk Yun, 2012. "A dichotomous choice survey for quantifying option and non-use values of bus services in Korea," Transportation, Springer, vol. 39(1), pages 33-54, January.
    4. Drevs, Florian & Tscheulin, Dieter K. & Lindenmeier, Jörg & Renner, Simone, 2014. "Crowding-in or crowding out: An empirical analysis on the effect of subsidies on individual willingness-to-pay for public transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 250-261.
    5. Börjesson, Maria & Fung, Chau Man & Proost, Stef, 2020. "How rural is too rural for transit? Optimal transit subsidies and supply in rural areas," Journal of Transport Geography, Elsevier, vol. 88(C).
    6. 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.
    7. Sharav, Nir & Givoni, Moshe & Shiftan, Yoram, 2019. "What transit service does the periphery need? A case study of Israel’s rural country," Transportation Research Part A: Policy and Practice, Elsevier, vol. 125(C), pages 320-333.
    8. Jørgensen, Finn & Mathisen, Terje Andreas & Larsen, Berner, 2011. "Evaluating transport user benefits and social surplus in a transport market--The case of the Norwegian ferries," Transport Policy, Elsevier, vol. 18(1), pages 76-84, January.
    9. del Mar Parra López, María & Annema, Jan Anne & van Wee, Bert, 2022. "The added value of having multiple options to travel to. An explorative study," Journal of Transport Geography, Elsevier, vol. 98(C).
    10. Isabelle Nicolaï & Rémy Le Boennec, 2018. "Smart mobility providing smart cities," Post-Print halshs-01794612, HAL.

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