MEASURING CAR DRIVERS’ WILLINGNESS TO PAY FOR IMPROVED INTERCITY TRANSPORTATION SERVICE: A CASE STUDY IN LIBYA

Abstract

The current study investigates solutions to optimize the intercity highway network and to facilitate the understanding of the transport mode of Libyans, according to the proposed transport policies, in terms of reducing car usage for intercity trips. In this study, different models namely the logit and spike models are applied to estimate the mean of the willingness to pay (WTP) value for some proposed policies in order to be able to compare the results from each policy and analyses to what extent that each was regarded as suitable for our data characteristics. A large number of respondents were unwilling to pay any money for the different proposed policies on transportation. Therefore, the Spike model was used to avoid errors in estimation and create a WTP pricing model for the different proposed policies on transportation. The overall results indicate that the spike model outperforms the logit model significantly.

Keywords

• Transport policy measures
• Contingent valuation
• Willingness-to-pay
• Spike model
• Libya.