Willingness to pay for a high-speed passenger rail service between Barranquilla and Cartagena Willingness to pay for a high-speed passenger rail service between Barranquilla and Cartagena

Abstract

This paper shows the factors influencing the willingness to pay (WTP) for a new high-speed passenger rail service between Barranquilla and Cartagena. We used the contingent valuation as an instrument for data collection and we conducted a sequential experimental design in order to identify factors that have significant effect on DAP, which average value was $29,000 Colombian pesos. We calibrated a first order regression model to explain the DAP based on the variables: headway, travel time and Wi-Fi availability and electrical outlets. The optimization process greatly enhanced the DAP to a cost of $39,000 Colombian pesos, which is considered very low compared with international benchmarks for these services, concluding that it calls into question the viability of the proposed system.