Managing transportation externalities in the Pyrenees region: measuring the willingness-to-pay for road freight noise reduction using an experimental auction mechanism

Abstract

The estimation of the noise impact caused by road freight transportation is critical to have acknowledgment of the ambiance pollution caused by road traffic crossing geographical areas containing important natural resources. Thus, our work proposes a within-subject survey where a Contingent Valuation Method (CVM) is combined with a laboratory economic experimental auction. Our study objective is to measure the willingness-to-pay (WTP) for reducing traffic noise nuisances due to freight transportation in the region of Navarre, Spain. A special focus is made regarding the measurement of the hypothetical bias, when a comparison is done between hypothetical WTP, coming from the CVM study, with real-incentivized one, as the outcome of the economic experiment. Additionally, statistical analyses are conducted in order to find explanation factors for these outcomes. Results suggest a strong evidence for an upward hypothetical bias (from 50% to 160%) indicating the income, the educational level, the gender, and the age as the main factors which explain that bias.