Estimation of option and non-use values for intercity passenger rail services

Justin S. Chang

Document Type

Journal Article

Publication Date

3-2010

Subject Area

mode - rail

Keywords

use values, option values, non-use values, stated preference, double-bounded dichotomous choice survey, survival analysis

Abstract

This paper considers option and non-use values of intercity passenger rail services in Korea. The total economic value of a given transport service can be classified into use, option and non-use values, but other grouping rules can be applied, respectively. The use value is the consumer’s surplus from the actual ride of a specific mode. The option value, on the other hand, can be defined as a traveller’s willingness to pay for reserving a travel mode, which is not his or her main choice, as a standby alternative. Finally, the non-use value represents benefits that are not attributable to the actual use or option use, but to the vicarious, altruistic, functional and existing worth of a transport service. A random stated preference survey based on a double-bounded dichotomous choice is conducted. A survival model is applied to the data collected. Calculations are based on trip makers’ willingness to pay for option and non-use values, using the parameters of the estimated survival model. Some concluding remarks are also presented.

Rights

Permission to publish the abstract given by Elsevier, copyright remains with them.

Comments

Journal of Transport Geography Home Page: http://www.sciencedirect.com/science/journal/09666923

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