טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentGhanayim Muhammad
SubjectEstimating the Willingness to Pay for In-Vehicle e-Safety
Systems
DepartmentDepartment of Civil and Environmental Engineering
Supervisor Professor Shlomo Bekhor
Full Thesis text - in Hebrew Full thesis text - Hebrew Version


Abstract

Electronic safety (E-safety) applications include a broad class of systems installed in the vehicle, infrastructure, or both, in order to increase road safety. There are many e-safety applications, at different levels of implementation. However, the contribution of these applications to road safety is unclear.

The purpose of this study is to estimate the willingness to pay for six in-vehicle E-safety systems selected by the Israel Road Safety Authority: Curve Speed Warning (CSW), Lane Change Assistant (LCA), Adaptive Cruise Control (ACC), Pre-crash Protection of Vulnerable Road Users (PCV), Driver Drowsiness Monitoring (DDM), and Night Vision (NIV).

The main hypothesis of this research is that the population would be interested in acquiring and/or paying for these systems, if they understand that the systems bring safety benefits . According to the literature review, few studies examined willingness to pay for car electronic safety-related accessories. The contribution of this study will be the system of existing statistical methods for inferring willingness to pay for additional e-safety systems.

The stated preference survey conducted in this research included four different inquiring methods about the willingness to pay as follows: Relevant question method, direct questions method, alternatives method, and Ranking method. The sample used for the analysis included 577 respondents, and binary logit models were estimated (purchase or not the system).

The results show consistent findings with respect to the literature. No significant effects on the willingness to pay were found among the different question methods. As expected, there are significant differences with respect to the different e-safety systems examined, and consequently, different elasticities for each system.

Factors like driving frequency, income, driving experience, accident history, were found to influence the probability of purchasing a system, whereas location and gender were not found significant. In line with the research performed for the Road Safety Authority, the higher willingness to pay for e-safety systems were correlated with higher safety potentials. This means that the individual is willing to pay about the safety devices that are thought to be more beneficial in terms of safety.   

The findings can help decision makers to assess the potential safety of these systems. Another contribution of the study is the possibility to estimate willingness to pay for new and relatively not known systems. This comparison will provide a broad picture of the preferences of drivers compared to drivers in other countries .