How does the perception of safety on paratransit influence usage and willingness to pay

Abstract

This paper investigates how the perception of safety influences the decision on using paratransit in Cochabamba, Bolivia and how safety or safety improvements influence the willingness to pay (WTP) for paratransit, a service provided by many private organizations. Previous studies have already documented that paratransit in South America has a problem with insecurity, such as harassment, robbery, and other crimes. This research also shows that paratransit users in Cochabamba have in many cases already experienced crimes in traffic as well. Examining survey data by a logistic regression produced fairly robust results and makes it possible to predict and understand who will or will not pay for more safety. Many respondents indicated that safety impacts their decision to use paratransit. If the city of Cochabamba chooses to increase its transport fares for this purpose, policy-makers should differentiate fares according to social-demographic criteria, which have a major influence on residents' willingness to pay.