Abstract
The aim of this article is to discuss theoretically and to study empirically how Norwegian drivers' willingness to pay (WP) for not losing their driving licence vary with their personal characteristics. The theoretical discussion and empirical results are based on standard microeconomic theory and contingent valuation, respectively. The WP values increase concavely with the length of the suspension period of the driving licence and differ greatly between drivers. They increase significantly with a driver's income, dependence on the car at work and driving experience. Moreover, male drivers, young drivers and drivers living in rural areas have higher WP values than their counterparts. Consequently, driving licence suspension will deter drivers to different extents. The relative impacts of the above explanatory variables on the WPs are, broadly speaking, independent of the length of the suspension period.
Similar content being viewed by others
References
Cramer J (1973) Empirical Econometrics. Amsterdam: North-Holland Publishing Company.
Diamond P & Hausman J (1993) On Contingent Valuation Measurement of Nonuse Values. In: Hausman J (ed.) Contingent Valuation. A Critical Assessment (pp. 3–38). Amsterdam: North-Holland Publishing Company.
Goodwin P (1992) A review of new demand elasticities with special reference to short and long run effects of price changes. Journal of Transport Economics and Policy XXVI: 155–163.
Hanemann M (1991) Willingness to pay and willingness to accept. How much can they differ. American Economic Review 81: 635–6337.
Hausman J (ed) (1993) Contingent Valuation. A Critical Assessment. Amsterdam: North-Holland Publishing Company.
Hausman J, Leonard G & McFadden D (1993) Assessing use value losses caused by natural resource injury. In: Hausman J (ed.) Contingent Valuation. A Critical Assessment. Amsterdam: North-Holland Publishing Company.
Institute of Marketing Research (1997) Bilundersøkelsen 1997 (Private Car Survey 1997). In Norwegian, Oslo.
Judd C, Smith E, & Kidder L (1991) Research Methods in Social Relations (6th edition). San Francisco: Holt, Rinehart and Winston, Inc.
Jørgensen F & Wentzel-Larsen T (1999) Regulating speed on Norwegian roads. In: Meersman H et al. (eds.) World Transport Research. Selected proceedings of the 8th World Conference on Transport Research, Vol. 2: Planning, Operation, Management and Control (pp. 425–440). Oxford: Elsevier Science.
Kemp M & Maxwell C (1993) Exploring a budget constraint for contingent valuation estimates. In: Hausman JA (ed.) Contingent Valuation. A Critical Assessment (pp. 217–269). Amsterdam: Elsevier Science B.V.
MacFadden D & Leonard G (1993) Issues in the contingent valuation of environmental goods: methodologies for data collection and analysis. In: Hausman J (ed.) Contingent Valuation. A Critical Assessment. Amsterdam: North-Holland Publishing Company.
Maddala G (1992) Introduction to Econometrics (2nd edition). New York: Macmillan Publishing Company.
Marwell G & Ames RE (1981) Economists free ride: does anyone else. Journal of Public Econometric 15: 295–310.
Mitchell RC & Carson RT (1989) Using Surveys to Value Public Goods. Washington.
Nicholson W (1998) Microeconomic Theory. New York: The Dryden Press.
Shavell S (1993a) The optimal structure of law enforcement. The Journal of Law & Economics XXXVI: 255–288.
Oum T, Waters W & Young J (1992) Concepts of price elasticities of transport demand and recent empirical estimates. Journal of Transport Economics and Policy XXVI: 139–153.
Shavell S (1993b) Contingent valuation of the nonuse value of natural resources: implications for public policy and the liability system. In: Hausman J (ed.) Contingent Valuation. A Critical Assessment. Amsterdam: North-Holland Publishing Company.
Stigler G (1970) The optimum enforcement of laws. Journal of Political Economy 78: 526–536.
Weisberg S (1985) Applied Linear Regression. New York: John Wiley & Sons.
Willig R (1976) Consumer's surplus without apology. American Economic Review 66: 589–597.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Jøgensen, F., Wentzel-Larsen, T. Car drivers' willingness to pay for not losing their driving licence. Transportation 29, 271–286 (2002). https://doi.org/10.1023/A:1015637012059
Issue Date:
DOI: https://doi.org/10.1023/A:1015637012059