Analyzing behavioral factors affecting Indian motorcyclists willingness to pay for safety

This work analyses motorcycle riders’ willingness to pay (WTP) for fatality risk reduction (RR), for 20% 40%, 50%, 60% and 80% RR levels, considering hypothetical improved helmets using payment card. Value of Statistical Life (VSL), which indicates the WTP value for 1% risk reduction, is estimated considering linear variation of average WTP for different RR levels. The work also analyses how RR level and individual’s socio-demographic profile influence WTP for safety using two-level Tobit model. Structural equation model was used to analyze how socio-demographic profile affect individual’s personal and social beliefs towards helmet use and safety, how these beliefs affect attitude towards helmet use (Theory of Planned Behavior constructs) and how these attitudes in turn affect the WTP. Data for this work was collected through face-to-face interviews of 541 motorcyclists in Patna, India.

The VSL for Indian motorcycle rider safety was estimated as 1,170,000 USD, which is about 52 times the per capita income, which is in the range of VSL observed by other researchers for road safety for low- and middle-income countries. It was observed that greater RR potential of helmet improved WTP significantly. More people were willing to pay less than average for any RR level but average WTP variability was less for higher RR levels. VSL obtained was comparable to that obtained in similar Asian countries. Also, socio-demographic characteristics gender, education, income, marital status and household size significantly influenced the beliefs; beliefs influenced attitudes, and attitudes influenced WTP.