Working Papers, Swedish National Road & Transport Research Institute (VTI)
No 2007:13:
Eco-driving? A discrete choice experiment on valuation of car attributes
Martina Högberg ()
Abstract: To elicit the value that car consumers place upon
environmental concerns when purchasing a car, a certain type of Discrete
Choice Modelling called Choice Experiment was used. The Choice Experiment
includes the four car attributes safety, carbon dioxide emissions,
acceleration and annual cost. The survey was sent to a random sample of
1500 people in Sweden between 25 and 50 years of age in October 2006. The
data collected was incorporated in a binomial logit model from which the
coefficients of the utility function for cars were estimated. Both the
estimated values of Willingness to Pay and the Marginal Rates of
Substitution gave indications that the private goods safety and
acceleration are higher valued than a genuine public bad such as carbon
dioxide emissions. The result also showed that the design of the Choice
Experiment can have impact on the values obtained.
Keywords: Willingness to Pay; Discrete Choice Experiment; Environmental Valuation; (follow links to similar papers)
JEL-Codes: C42; Q50; (follow links to similar papers)
71 pages, September 27, 2007
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