Disaggregated behavioral responses to willingness‐to‐pay for the electronic levy in Ghana

Abstract

AbstractThis study investigates the disaggregated behavioral responses of mobile money users' willingness to pay for electronic levy payments in Ghana. We use cross‐sectional survey primary data and a probit regression estimation technique with its associated average marginal effects and check robustness with a linear probability model. The evidence from the study indicates that the disaggregated behavioral factors that drive willingness to pay for the e‐levy include individuals maintaining their current levels of electronic fund transfers, the intention to increase their electronic fund transactions, and intention to stop using electronic fund transfers that attract the e‐levy. Beyond the disaggregated behavioral responses, psychological (e.g., trust in government) and socioeconomic factors (individual income and gender) are identified as important drivers of willingness to pay for the e‐levy. We suggest that policies around e‐levies must not only focus on individual behavioral responses alone, as the drivers include behavioral, psychological, and socioeconomic factors.Related ArticlesAdegboye, Alex, Kofo Adegboye, Uwalomwa Uwuigbe, Stephen Ojeka, and Eyitemi Fasanu. 2023. “Taxation, Democracy, and Inequality in Sub‐Saharan Africa: Relevant Linkages for Sustainable Development Goals.” Politics & Policy 51(4): 696–722. https://doi.org/10.1111/polp.12547.Lachapelle, Erick, Thomas Bergeron, Richard Nadeau, Jean‐François Daoust, Ruth Dassonneville, and Éric Bélanger. 2021. “Citizens' Willingness to Support New Taxes for COVID‐19 Measures and the Role of Trust.” Politics & Policy 49(3): 534–65. https://doi.org/10.1111/polp.12404.Shock, David R. 2013. “The Significance of Opposition Entrepreneurs on Local Sales Tax Referendum Outcomes.” Politics & Policy 41(4): 588–614. https://doi.org/10.1111/polp.12028.