For whom the tunnel be tolled: A four-factor model for explaining willingness-to-pay tolls

Abstract

This research examines citizen acceptance of tolls and road pricing, and specifically focuses on determinants of the individual’s expressed willingness-to-pay tolls to use a tunnel express lane that would be free of traffic delays. We answer the research question “What factors influence citizens’ willingness-to-pay tolls” by empirically estimating a four factor model of willingness-to-pay: (a) direct benefit to the respondent; (b) relative cost over time; (c) community concern; and (d) political and environmental liberalism. We use data about citizen perceptions from the Life in Hampton Roads Survey, a survey of residents of Hampton Roads, Virginia. We find that willingness-to-pay is primarily driven and motivated by self-interest, through a balancing of benefit to cost relative to individual income and frequency of use. In addition, concern for the community also contributes to willingness-to-pay tolls. The individual’s perception of government’s trustworthiness, a reflection of political and environmental beliefs, also influences the extent to which an individual is willing to pay tolls.