Rural environment stakeholders and policy making: Willingness to pay to reduce road transportation pollution impact in the Western Pyrenees

Abstract

In spite of the strategic national and regional development importance of transportation infrastructures, road transportation is one of the major sources of externalities worldwide. Using data collected from 900 residents living in 14 rural towns near the roads crossing the Spanish Pyrenees, we model citizens’ willingness-to-pay (WTP) to reduce noise and air pollution. We collect the data adopting a contingent valuation method (CVM) design and we analyze the data employing a Zero-Inflated Ordered Probit (ZIOP) model, which allows us to account for an excessive number of zero observations. Our results are in contrast with previous studies’ results with regard to environmental attitudes and socio-economic profiles of residents. Our findings indicate that the stakeholders living near major roads have higher incentives to offset environmental costs. Also, younger, better educated, and more environmentally-aware citizens are willing to pay more to reduce externalities, as they are influenced by their values and environmentally friendly sub-culture, possibly fostered during the past 30years of green movement worldwide campaigning.