Explaining Willingness-to-Pay for Tolls: The Role of Individual Self-Interest, Concern for the Greater Good, and Socio-political Factors

This research examines citizen acceptance of tolls and road pricing, and specifically focuses on determinants of the individual’s expressed willingness-to-pay tunnel tolls to use an express lane which would be free of traffic delays. The authors answer the research question “What factors influence citizens’ willingness-to-pay tolls” by empirically estimating a model of willingness-to-pay being influenced by three factors: (a) individual self-interest; (b) the greater public good; and (c) socio-political variables. They use data about citizen perceptions from the Life in Hampton Roads Survey, which is a survey of 700 residents of Hampton Roads, Virginia. The authors find that willingness-to-pay is primarily driven and motivated by self-interest, through the anticipated direct cost and benefits of tolls to be borne by the individual. In addition, concern for the greater good also contributes to willingness-to-pay. The individual’s perception of government’s trustworthiness, and characteristics of the individual (race and education) also influence the extent to which an individual is willing to pay tolls.