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Willingness to pay price for tolls and on-board units for short-distance freeway users who normally avoid toll boots

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  • Jou, Rong-Chang
  • Huang, Guei-Lang

Abstract

This study explored the willingness to pay price for tolls and on-board units (OBUs) for short-distance freeway users who did not pass through toll stations and further explored the willingness to pay price for different user groups. Those users would be legally obliged to bear the brunt of freeway costs instead of avoiding the payment of any out-of-pocket costs. As expected, the implementation of ETC has not been successful because of the travel patterns of freeway users. The spike model was adopted in this study to minimise estimation errors caused by users who were unwilling to pay. The estimation results revealed that compared with other user groups, short-distance freeway users who did not pass through toll stations were less willing to pay for an OBU. In addition, the willingness to pay price for tolls increased with travel distance. In addition, this study demonstrated that short-distance freeway users who did not pass through toll stations evinced low levels of willingness to pay due to various factors, such as “low freeway usage rate”, “trips that occurred during off-peak hours”, and “short travel time”.

Suggested Citation

  • Jou, Rong-Chang & Huang, Guei-Lang, 2014. "Willingness to pay price for tolls and on-board units for short-distance freeway users who normally avoid toll boots," Transport Policy, Elsevier, vol. 31(C), pages 10-18.
    • Handle: RePEc:eee:trapol:v:31:y:2014:i:c:p:10-18
    DOI: 10.1016/j.tranpol.2013.11.001
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    References listed on IDEAS

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    1. Seung-Hoon Yoo & Seung-Jun Kwak, 2002. "Using a spike model to deal with zero response data from double bounded dichotomous choice contingent valuation surveys," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 929-932.
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    5. Rong-Chang Jou & Yuan-Chan Wu & Ke-Hong Chen, 2011. "Analysis of the environmental benefits of a motorcycle idling stop policy at urban intersections," Transportation, Springer, vol. 38(6), pages 1017-1033, November.
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    7. Jou, Rong-Chang & Chiou, Yu-Chiun & Chen, Ke-Hong & Tan, Hao-I, 2012. "Freeway drivers’ willingness-to-pay for a distance-based toll rate," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 549-559.
    8. Olszewski, Piotr & Xie, Litian, 2005. "Modelling the effects of road pricing on traffic in Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 755-772.
    9. Aurelia Bengochea-Morancho & Ana Fuertes-Eugenio & Salvador Saz-Salazar, 2005. "A comparison of empirical models used to infer the willingness to pay in contingent valuation," Empirical Economics, Springer, vol. 30(1), pages 235-244, January.
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