A dichotomous choice survey for quantifying option and non‐use values of bus services in Korea

The total economic value for a transportation service consists of use, option, and non‐use value. The use benefit is based on a traveler’s willingness to pay for usual consumption of the service. The optional value, on the other hand, is related to the possible use of the service for trips not yet anticipated or currently accommodated by other travel modes. The non‐use value, however, is derived from the intrinsic merit of the service, even though a trip‐maker never actually or potentially depends on the mode. A closed‐ended contingent valuation method is considered for the quantification of the option and non‐use values. A survey of single‐ and double‐bounded dichotomous choices is conducted with a case study of South Korean bus operations. A logistic regression model and a survival analysis for the single‐ and double‐bounded approaches, respectively, are applied. The estimation result is examined according to the statistical property required and the behavioral validity expected. In particular, three issues from the output are discussed. First, the results help to show the preferable framework between single‐ and double‐bounded surveys for addressing an individual’s option and non‐use values. Second, the differences in the absolute values of option and non‐use values are compared. Thirdly, the relationship between trip‐makers’ willingness to pay and the level of service of their primary travel modes are investigated. In conclusion, the summary of research and the possibilities for future studies are given.