|M.Sc Student||Trop Tamar|
|Subject||Estimating Willingness to Pay for the Vse of Roads|
|Department||Department of Architecture and Town Planning||Supervisor||Professor Daniel Czamanski|
The rapidly increasing traffic congestion on Israel’s roads, together with ever scarcer resources available to develop transportation networks, have led to the consideration of alternative methods of financing transportation infrastructure. Toll roads are one such option that has not been yet implemented in Israel. Evaluation of the feasibility of toll roads in Israel thus necessitates estimation of demand for a service which is not currently known to consumers.
This research represents a first step towards determining prospective demand for toll roads in Israel and it’s elasticity. Demand is defined in terms of the potential users’ willingness to pay for expected change in the utility level derived from the new routes. Empirical investigation of the stated willingness to pay tolls and the factors affecting it is estimated by a survey of a sample of potential users.
The transportation project selected for investigation is a system of toll tunnels planned to cross the Carmel Ridge, from the Knot intersection area to the Cannel beach area.
The main findings of the survey are: 1) The majority of respondents are willing to pay for use of the tunnels, especially for the daily commuting. 2) The drivers are willing to pay, on average, a maximum toll of 1.83 NIS (in March 1991). 3) The elasticity of demand for travel via the tunnels was found to be, in general, very high and is estimated at approximately -3.0. 4) Drivers who are willing to pay tolls possess higher years of schooling, income levels, and travel frequency on the relevant routes as well as use of company owned cars.