Abstract
Our study investigates the benefits that the Czech inhabitants could gain from the reduction of road traffic noise. We applied contingent valuation study in order to estimate willingness-to-pay (WTP) for the reduction of traffic noise by 10 dB (from 70 dB up 60 db).
Using data from 2010 Czech representative survey (n=2,104), we estimated mean WTP by nonparametric method which was based on the Kaplan-Meier estimate. Further, we explained the variability of WTP using Double-Hurdle model.
In the first step, the Probit model explained the choice of individuals that are willing to participate on the program decreasing the road noise. In the second step, the log-normal regression model explained the variability of WTP on the socio-economic characteristics of individuals and characteristics of noise in the area where people live.