Phasing Out Polluting Motorcycles in Bangkok : Policy Design by Using Contingent Valuation Surveys
The authors use a contingent valuation method to study the design of economic incentives to phase out polluting motorcycles in Bangkok. Like in many other cities, the government of Bangkok has been considering a series of control measures to discou...
Main Authors: | , , , |
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Format: | Policy Research Working Paper |
Language: | English en_US |
Published: |
2014
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2003/06/5142045/phasing-out-polluting-motorcycles-bangkok-policy-design-using-contingent-valuation-surveys http://hdl.handle.net/10986/17427 |
Summary: | The authors use a contingent valuation
method to study the design of economic incentives to phase
out polluting motorcycles in Bangkok. Like in many other
cities, the government of Bangkok has been considering a
series of control measures to discourage and eventually
eliminate the use of heavily polluting motorcycles. Two of
the possible policy instruments under consideration are
charges on those polluting vehicles which are operating in
the streets and compensation to those polluting vehicles
which would stay off the roads. The policy research
questions then include (1) what are the charges implied or
compensation provided, given a policy target, and (2) what
are the reactions of motorcycle owners to those charges or
compensation. To answer those policy questions, the authors
conducted a stochastic contingent valuation survey in
Bangkok to question motorcycle owners on the likelihood they
would keep or give up riding their motorcycles in the
streets given certain charges or compensations. Results show
that among others, about 80 percent of those motorcycles
which did not pass the emission tests would be off the
streets if a charge of 1,000 baht a year was levied, while
under a one-time compensation of 10,000 baht, the number
would be about 50 percent. The authors also estimate the
average values of maximum willingness to pay (WTP) for
staying on the road and minimum willingness to accept (WTA)
compensation for staying off the street, and analyze the
determinants of WTP and WTA. Their econometric analysis
shows that, among other factors, household income, fuel
costs, use of motorcycles, and/or public transit affect the
value of WTP and WTA. |
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