Estimating benefits for effective enforcement of speed reduction from dichotomous-choice CV - The case of rural trunk roads

We present an empirical estimation of the distribution of WTP for effective speed restriction via implementation of local traffic calming schemes. Ran dom samples are drawn from the populations of households (henceforth HHs) o f three centres intersected by main trunk roads with varying through traffi c conditions. We estimate the underlying WTP distributions from discrete-ch oice responses to site-specific referendum contingent valuation studies acc ounting for zero-bidders. We then test the hypothesis of different distribu tions across villages. The statistical analysis consists first of a paramet ric specification and then of a totally non-parametric one. Stated welfare changes for effective speed reduction are found to be sizeable and the para meters of the random utility models are plausibly related to differences in objective speed measures across centres. The results appear to encourage t he use of the referencum-CV method in the estimation of local public goods. In this case study the proposed public project would seem to pass the Kald or-Hicks potential compensation test.