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How Much Will I Pay for Freeway Real-Time Traffic Information?

Author

Listed:
  • Rong-Chang Jou .

    (Department of Civil Engineering, College of Science and Technology, National Chi Nan University, Puli, Nantou 545, Taiwan)

  • Ke-Hong Chen

    (Department of Civil Engineering, College of Science and Technology, National Chi Nan University, Puli, Nantou 545, Taiwan)

Abstract

Although there is research focused on real-time traffic information, in terms of types of information, timing of provision and drivers’ acceptance, not much is related to quantifying real-time traffic information and its perceived value, i.e ., amount of information and willingness to pay (WTP) for that information. In this study, freeway drivers’ preferred types of real-time traffic information and their willingness to pay for them are investigated. Due to traffic information having the property of non-market goods, a contingent valuation method is applied. A computer-aided survey was conducted in rest areas along freeways to obtain the samples needed. A Spike model is used to overcome the serious biases that would otherwise be caused by numerous zero WTPs in samples when logit and probit models are used. Finally, freeway drivers’ WTP for different types of real-time traffic information can be obtained from the estimation results. The results may be of importance in pricing different types of traffic information more realistically in the future.

Suggested Citation

  • Rong-Chang Jou . & Ke-Hong Chen, 2015. "How Much Will I Pay for Freeway Real-Time Traffic Information?," Sustainability, MDPI, vol. 7(10), pages 1-12, September.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:10:p:13142-13153:d:56385
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    References listed on IDEAS

    as
    1. Rong-Chang Jou & David A. Hensher & Ke-Hong Chen, 2007. "Route Choice Behaviour of Freeway Travellers Under Real-time Traffic Information Provision -- Application of the Best Route and the Habitual Route Choice Mechanisms," Transportation Planning and Technology, Taylor & Francis Journals, vol. 30(6), pages 545-570, August.
    2. Jou, Rong-Chang & Lam, Soi-Hoi & Liu, Yu-Hsin & Chen, Ke-Hong, 2005. "Route switching behavior on freeways with the provision of different types of real-time traffic information," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(5), pages 445-461, June.
    3. Mohamed Abdel-Aty & M. Abdalla, 2004. "Modeling drivers' diversion from normal routes under ATIS using generalized estimating equations and binomial probit link function," Transportation, Springer, vol. 31(3), pages 327-348, August.
    4. Hu, Wuyang, 2006. "Use of Spike Models in Measuring Consumers' Willingness to Pay for Non-GM Oil," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(3), pages 525-538, December.
    5. Seung-Hoon Yoo & Chul-Oh Shin & Seung-Jun Kwak, 2006. "Inconvenience cost of spam mail: a contingent valuation study," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 933-936.
    6. 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.
    7. Salvador Del Saz-Salazar & Leandro Garcia-Menendez, 2001. "Willingness to Pay for Environmental Improvements in a Large City Evidence from The Spike Model and From a Non-Parametric Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 103-112, October.
    8. 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.
    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.
    10. Srinivasan, Karthik K. & Mahmassani, Hani S., 2003. "Analyzing heterogeneity and unobserved structural effects in route-switching behavior under ATIS: a dynamic kernel logit formulation," Transportation Research Part B: Methodological, Elsevier, vol. 37(9), pages 793-814, November.
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