Using Contingent Valuation to Measure User and Nonuser Benefits: An Application to Public Transit

Abstract

The contingent valuation method (CVM) was used to measure the value of a community service, rural transit, that has both user and nonuser values. Traditional focus groups and a CVM questionnaire provide estimates of willingness to pay and willingness to accept. Tobit analysis was used to test relationships among the variables. Income was not related to the amount of perceived benefit, but the alternative desire to provide transit for others was statistically significant. Ranges for possible total benefits, user and nonuser, are provided for the test transit systems. Proper aggregation of benefits to the population was found to be critical.