Does WTP for Transport Safety Vary by Mode? Evidence from Sweden.

Abstract

This study examines how individuals’ preferences for transport safety depends on the mode of transportation using discrete choice experiments. Whereas willingness to pay (WTP) to reduce road-traffic risk has been examined in a relatively large number of studies, WTP estimates to reduce the risk in other modes such as rail and air-traffic are rare. Moreover, since between mode comparisons often have relied on between study comparisons, where differences in estimates may be confounded by study differences, the knowledge of how safety preferences differ between modes is limited. The first main objective of this study is, therefore, to examine to what extent WTP for reducing injury and fatality risk differs between modes in a controlled setting. Two other objectives of the study are to: (i) examine the extent of within-mode heterogeneity in WTP, and (ii) conduct a critical analysis of scope sensitivity based on between sample examination. Results suggest evidence of mode specific WTP, substantial within-mode heterogeneity, and within sample scope sensitivity but not between sample scope sensitivity.