Altruistic preferences in the Willingness to Allocate Public Budget approach

A trade-off between travel time savings and safety

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Abstract

This study investigates paternalistic and non-paternalistic altruistic preferences in the Willingness to Allocate Public Budget approach (WTAPB) in a transport context. To the best of my knowledge the extent to which citizens are willing to sacrifice effects for themselves to realize effects for other people, has not been studied in a WTAPB setting. This is the most important research gap that this study aims to alleviate. Furthermore, it is investigated to what extent citizens express paternalistic and non-paternalistic altruistic preferences. Two stated choice experiments were conducted by asking citizens to advice the government with regard to an investment in a bicycle infrastructure project which differ in travel time savings and safety. The first experiment focused on altruistic preferences for 10.000 citizens including themselves and 10.000 other citizens respectively. The second experiment focused on paternalistic and non-paternalistic preferences for 10.000 other citizens. This research has shown that respondents are willing to sacrifice more than 6 minutes travel time savings for 10.000 citizens including themselves, for a 10% risk reduction for 10.000 other citizens. Furthermore, individuals are willing to sacrifice 7% risk reduction for 10.000 citizens including themselves for 10% risk reduction for 10.000 other citizens.