A study using contingent valuation methodology to assess willingness to pay for light rail passenger transport

Abstract

This research explores the attributes or factors of public transport, with the aim to identify whether public transport, particularly rail transport is a realistic alternative to encourage change in travel preferences. The purpose is to identify how these transport factors influence individuals' willingness to pay estimates for light rail through contingent valuation. The overall analysis performed, consisted of a survey in the sample region, from which certain characteristics of the respondents were determined by descriptive statistical analysis with employing a contingent valuation (CV) questionnaire. Econometric analysis determining the factors affecting WTP for a subgroup of respondents was carried out. It was found that, overall there is a positive demand for alternative public transport which is effected by socio-economic characteristics, current travel demands of respondents and by attributes of alternative transport options. Within these, while income level, number of people residing in households and age seem to be the significant socio-economic characteristics, frequency of rail services and comfortable, safe and clean rail stations seem to have particular importance among all demand shifters related to light rail. It is also observed that, problems of traffic congestion and pollution also influence respondents' preferences in considering alternative transport modes for particular groups. Besides these factors which are important for particular respondent groups, the cost and/or price of public transport is considered to be the most important factor by all respondents in explaining their WTP for light rail transport.