Determinants of the willingness-to-pay for reducing the environmental impacts of road transportation

This paper examines the willingness-to-pay of people living in a number of villages in Navarre, in the Spanish Pyrenees to reduce noise and air pollution. Several models are used for estimation based on contingent valuation, noting that those living near roads are willing to pay more to reduce air and noise pollution. In addition, younger people, the better educated, and the more environmentally aware individuals are also willing to pay more to reduce those externalities.

► Simultaneous analysis of two environmental externalities (noise and pollution) caused by road transportation. ► Use of different statistical models in two-stage decision making in transportation. ► Pooled use of individual, local and situational variables to explain willingness to pay (WTP). ► Individual determinants of WTP are mainly the attitudes towards the environment and some socio-demographic variables. ► The physical level of noise and air pollution are associated with a greater WTP.