Evaluating Factors of the Willingness to Pay to Mitigate the Environmental Effects of Freight Transportation Crossing the Pyrenees

AbstractAll logistic activities generate environment costs such as noise and air pollution (externalities). One well-known method to study those externalities is the use of surveys in which people are asked about their willingness to pay (WTP) to compensate the caused damage. In this paper, we use both Double-Hurdle and Moulton's models in order to estimate the willingness to pay of the population living next to the roads crossing the Pyrenees in Navarre (Spain). That population suffers from the environmental impact, in terms of noise and pollution, of the freight transportation traversing those mountains and it is prone to pay to avoid the negative externalities associated to merchandises fluxes