Willingness to Pay for Car Safety: Sensitivity to Time Framing

Henrik Andersson, James Hammitt, Gunnar Lindberg (gunnar.lindberg@vti.se) and Kristian Sundström (kristian.sundstrom@sli.lu.se)
Additional contact information
Gunnar Lindberg: VTI, Postal: Dept. of Transport Economics, P.O. Box 55685, SE-102 15 Stockholm, Sweden
Kristian Sundström: Sw Inst for Food and Agric Economics, Postal: Scheelevagen 15 D, 220 07 Lund, SWEDEN

No 2008:8, Working Papers from Swedish National Road & Transport Research Institute (VTI)

Abstract: Stated preference (SP) surveys attempt to obtain monetary values for non-market goods that reflect individuals' “true”' preferences. Numerous empirical studies suggest that monetary values from SP studies are sensitive to survey design and so may not reflect respondents' true preferences. This study examines the effect of time framing on respondents' willingness to pay (WTP) for car safety. We explore how WTP per unit risk reduction depends on the time period over which respondents pay and face reduced risk. Using data from a Swedish contingent valuation survey, we find that WTP is sensitive to time framing; estimates based on an annual scenario are about 30 to 70 percent higher than estimates from a monthly scenario.

Keywords: Car safety; Contingent valuation; Double bound; Willingness to pay (search for similar items in EconPapers)
JEL-codes: C52 D60 I10 Q51 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2008-07-03
New Economics Papers: this item is included in nep-dcm and nep-env
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.transportportal.se/SWoPEc/Andersson_etal_VSL_Time.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:vtiwps:2008_008

Access Statistics for this paper

More papers in Working Papers from Swedish National Road & Transport Research Institute (VTI) VTI, Transport Economics, P.O. Box 6056, SE-171 06 Solna, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Biblioteket vid VTI (bibliotek@vti.se) and Emil Svensson (emil.svensson@vti.se) and Claes Eriksson (claes.eriksson@vti.se) and Tova Äng (tova.ang@vti.se).