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Abstract

This study employed contingent valuation method and used the data collected from a referendum survey to estimate people’s willingness to pay for gas tax under hypothetical scenarios. The results show that: (1) The results derived from Z test and dates shows that there is a significant increase with 20% more people voting for yes to gas tax when the gas price is 2.5 dollars per gallon compared to when the gas price is current. (2) The results derived from Probit model shows that the effect of Ukraine war and natural disasters are not statistically significant and does not have substantive effect on WTP. (3) Most of these socio-demographic coefficients in regression model are not consistent with existing literature, and they are not statistically significant. (4) The study found that the average Americans are WTP approximately $5 and $6.85 respectively under current and future gas price scenarios.

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