Working Paper: 551

Assessing Commuter’s Willingness to Pay to Reduce Traffic
Congestion Induced Air Pollution in Bengaluru, India

Vijayalakshmi S
Krishna Raj

 

Abstract

Traffic congestion is a serious urban menace of the world. Time stuck in traffic causes huge productivity loss and creates irreversible damage to the environment and economy. One such major negative impact is the vehicular emissions which affect both road users and non-users. The main objective of the current study is to examine the Willingness to Pay (WTP) among people for the reduction in traffic-induced air pollution which would explore probable policy options. For this, the study selected Bengaluru city of India, which is notorious for its traffic menace and vehicular emissions. The result showed that the mean WTP is about Rs. 376 per person. Further, using Heckman’s Two-Step Model, the study showed that ¬¬¬traffic exposure, illness, workdays loss and awareness regarding the impact of air pollution are the key factors affecting the WTP and WTP amount. This indicates that it is high time for the city planners to consider the options to reduce traffic emissions.

 

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