AbstractCost-benefit analysis (CBA) undertaken for the road sector in Norway includes non-market goods such as travel time savings, traffic safety, noise and air pollution. Traditionally, these non-market goods are valued through separate willingness to pay studies without attention to interactions between them. This paper shows that a simultaneous valuation procedure, accounting for embedding effects between the non-market goods included in CBA for road investments, significantly reduces the valuations of travel time savings, noise and air pollution compared to a separate valuation procedure. Another result is that a reminder of substitutes and budget constraints seems less necessary if the valuation procedure is more holistic.


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    Title :

    Embedding effects in valuation of non-market goods


    Contributors:

    Published in:

    Transport Policy ; 10 , 1 ; 59-72


    Publication date :

    2002-06-01


    Size :

    14 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




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