Using Contingent Valuation to Measure User and Nonuser Benefits: An Application to Public Transit

The contingent valuation method (CVM) was used to measure the value of a community service, rural transit, that has both user and nonuser values. Traditional focus groups and a CVM questionnaire provide estimates of willingness to pay and willingness to accept. Tobit analysis was used to test relati...

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Bibliographic Details
Published in:Applied economic perspectives and policy 2002, Vol.24 (2), p.394-409
Main Authors: Painter, Kathleen M., Scott, Robert Douglas, Wandschneider, Philip R., Casavant, Kenneth L.
Format: Article
Language:English
Subjects:
Agricultural economics
Applied Analyses
Censuses
Economic benefits
Economic surveys
Economic value
Fares
Focus groups
L920
Public transportation
Q260
Transit systems
Valuation
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Summary:The contingent valuation method (CVM) was used to measure the value of a community service, rural transit, that has both user and nonuser values. Traditional focus groups and a CVM questionnaire provide estimates of willingness to pay and willingness to accept. Tobit analysis was used to test relationships among the variables. Income was not related to the amount of perceived benefit, but the alternative desire to provide transit for others was statistically significant. Ranges for possible total benefits, user and nonuser, are provided for the test transit systems. Proper aggregation of benefits to the population was found to be critical.
ISSN:1058-7195
2040-5790
1467-9353
2040-5804
DOI:10.1111/1467-9353.00105