Private vs. Business and Rail vs. Air Passengers: Willingness to pay for Transport Attributes

Abstract

Using a stated preference survey on passengers travelling by rail or air between the two largest cities in Sweden, we investigate passenger&#39s willingness to pay for improvements of different attributes of the transport modes. We find that both private and business passengers put a substantial value on improvements of the environmental impact from both rail and air. In general, private passengers have much lower fare equivalents for the attribute, which is explained by the fact that business passengers do not pay for the trips themselves. Further, air passengers have higher fare equivalents than what rail passengers have for both rail and air attributes