Willingness to pay for reduced congestion: a case study of Connaught Place
Student name: Ms Sonal Dhawan
Guide: Dr Kavita Sardana
Year of completion: 2016
Host Organisation: Institute of Economic Growth, New Delhi
Supervisor (Host Organisation): Dr M.N. Murty
Abstract: Connaught Place is one of the areas in Delhi, where the level of congestion has exceeded the acceptable level leading to time delays, excessive vehicular emissions and fuel loss. The problem can be addressed by introducing congestion charging in the area. But the key to the successful implementation of such a scheme is gaining public support. The study, thus, aims to assess the commuter’s preferences towards reduced congestion. The focus is to determine the factors that affect willingness to pay for a congestion charge and ascertain the average willingness to pay. This has been done using the Contingent valuation method in which a sample of 150 individuals was surveyed. The willingness to pay of the individuals was elicited using double bound dichotomous choice questionnaire. Bivariate probit and interval data model have been used to model the data collected from the survey. The results show that people’s perception about the impact of congestion on air pollution is significant in explaining their willingness to pay. The average congestion charge calculated using the delta method amounts to about Rs.77.
