Estimating the Value of Improved Street Lighting: A Factor Analytical Discrete Choice Approach

Abstract

This paper investigates the benefits of improved street lights to households, associated with the replacement of low-pressure sodium orange/yellow street lights with high-pressure sodium white street lights. Improved street lighting provides higher luminosity, improved colour rendition and less light pollution into the night sky. Benefits include reductions in crime and road accidents, streetscape enhancements and increased amenity attributable to less light pollution. The benefit estimation uses a double-bounded discrete choice contingent valuation approach, incorporating a factor analytical procedure. Results reveal safety concerns as the main factor influencing willingness-to-pay and that considerable differences exist in willingness-to-pay between households in urban and rural areas.