Joint models for noise annoyance and willingness to pay for road noise reduction
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Joint models for noise annoyance and willingness to pay for road noise reduction. / Fosgerau, Mogens; Bjørner, Thomas Bue.
I: Transportation Research Part B: Methodological, Bind 40, Nr. 2, 02.2006, s. 164-178.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Joint models for noise annoyance and willingness to pay for road noise reduction
AU - Fosgerau, Mogens
AU - Bjørner, Thomas Bue
PY - 2006/2
Y1 - 2006/2
N2 - Recent contingent valuation (CV) studies of the willingness to pay (WTP) for road noise reduction have used stated annoyance as an independent variable. We argue that this may be inappropriate due to potential endogeneity bias. Instead, an alternative model is proposed that treats both WTP and annoyance as endogenous variables in a simultaneous equation model as a combination of a linear regression with an ordered probit with correlated error terms and possibly common parameters. Thus, information on stated annoyance is utilised to estimate WTP with increased efficiency. Application of the model to a dataset from Copenhagen indicates a potential for improving the precision of the estimate of WTP for noise reduction with CV data.
AB - Recent contingent valuation (CV) studies of the willingness to pay (WTP) for road noise reduction have used stated annoyance as an independent variable. We argue that this may be inappropriate due to potential endogeneity bias. Instead, an alternative model is proposed that treats both WTP and annoyance as endogenous variables in a simultaneous equation model as a combination of a linear regression with an ordered probit with correlated error terms and possibly common parameters. Thus, information on stated annoyance is utilised to estimate WTP with increased efficiency. Application of the model to a dataset from Copenhagen indicates a potential for improving the precision of the estimate of WTP for noise reduction with CV data.
KW - Joint ordered discrete-continuous models
KW - Noise annoyance
KW - Valuation of noise reduction
KW - Willingness to pay
UR - http://www.scopus.com/inward/record.url?scp=25144478816&partnerID=8YFLogxK
U2 - 10.1016/j.trb.2005.03.001
DO - 10.1016/j.trb.2005.03.001
M3 - Journal article
AN - SCOPUS:25144478816
VL - 40
SP - 164
EP - 178
JO - Transportation Research. Part B: Methodological
JF - Transportation Research. Part B: Methodological
SN - 0191-2615
IS - 2
ER -
ID: 181873021