Using spike model to reduce traffic congestion and improve public transportation in Malaysia

In this study, passengers’ willingness to pay (WTP) for and willingness to accept (WTA) improved public transportation and shift to public transportation in Malaysia were examined. Specifically, this study aimed to determine the factors or transport attributes that affect passenger WTA and WTP to shift to public transportation. The adopted methodology was based on a contingent valuation (CV) survey, which was conducted on a representative sample of a cross section in residents of Kajang, in Malaysia. This CV primary survey elicited the demand of passengers for improved public transportation. The spike model was adopted to avoid estimation errors caused by a large percentage of respondents who were unwilling to pay and accept at all. The estimation results showed that the best reduction rate for both travel time and cost was 45% among other amounts that range from 15% to 75%. The best parking cost increment was US$0.30 and the average WTP is US$0.68