Abstract

Traffic congestion has become one of the issues in big city that can be denied. Time spent in traffic is miserably wasted and it creates negative externalities to the road users. The main objective of this study is to examine the road users’ willingness to pay for reducing traffic congestion in Klang Valley, Malaysia. A primary survey data with a total of 366 respondents is used for the analysis. Different price bids with 3 groups of toll payments were offered to the road users in order to avoid bias in analyzing their willingness to pay. The results demonstrate that the mean willingness to pay is about RM1.95 for toll payment in Klang Valley highways. The results also showed that household income, respondents’ occupation and price bid toll payment have significant effects on the willingness-to-pay to reduce traffic congestion. Based on these findings, several policies have been recommended.

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