Heterogeneous preferences for rural road investments and willingness to contribute

Rural road plays a crucial role in improving market access, labour mobility, and public service delivery in remote regions. However, limited evidence exists on how rural residents evaluate alternative road investment designs and how household characteristics shape their preferences. This study investigates rural residents’ preferences for road development using a discrete choice experiment conducted in Inner Mongolia, China. The experiment presented respondents with hypothetical road investment scenarios characterized by variations in road quality, maintenance obligations, financing arrangements, construction employment opportunities, travel time reduction, expected income impacts, and household costs. The results show that improvements in road quality and reductions in travel time significantly increase the probability that a project is selected, highlighting the importance of accessibility improvements for rural households. In contrast, institutional features such as financing arrangements and projected income gains exert comparatively weaker influence on decision-making. The estimates further reveal heterogeneity in preferences for high-quality road upgrades and connectivity improvements. Willingness-to-pay estimates indicate that households place considerable value on substantial improvements in road quality but assign relatively modest value to subsidy incentives or financing mechanisms. These findings suggest that participatory planning and flexible infrastructure design may be necessary to better align rural road investments with heterogeneous local preferences.

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Publication Details

Journal
Applied Economics
Published
2026-09-28
DOI
https://doi.org/10.1080/00036846.2026.2740197
Primary Topic
Economic and Environmental Valuation
Type
article
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article

Heterogeneous preferences for rural road investments and willingness to contribute

Yintu Bao, Ligao Bao, Gumula Wuri
Applied Economics
Economic and Environmental Valuation
article

Heterogeneous preferences for rural road investments and willingness to contribute

Yintu Bao, Ligao Bao, Gumula Wuri
article en

Abstract

Rural road plays a crucial role in improving market access, labour mobility, and public service delivery in remote regions. However, limited evidence exists on how rural residents evaluate alternative road investment designs and how household characteristics shape their preferences. This study investigates rural residents’ preferences for road development using a discrete choice experiment conducted in Inner Mongolia, China. The experiment presented respondents with hypothetical road investment scenarios characterized by variations in road quality, maintenance obligations, financing arrangements, construction employment opportunities, travel time reduction, expected income impacts, and household costs. The results show that improvements in road quality and reductions in travel time significantly increase the probability that a project is selected, highlighting the importance of accessibility improvements for rural households. In contrast, institutional features such as financing arrangements and projected income gains exert comparatively weaker influence on decision-making. The estimates further reveal heterogeneity in preferences for high-quality road upgrades and connectivity improvements. Willingness-to-pay estimates indicate that households place considerable value on substantial improvements in road quality but assign relatively modest value to subsidy incentives or financing mechanisms. These findings suggest that participatory planning and flexible infrastructure design may be necessary to better align rural road investments with heterogeneous local preferences.

Applied Economics
Daito Bunka University (JP), Inner Mongolia Open University (CN), Tokyo University of Agriculture and Technology (JP)
Openalex Percentile: Top 5%
Economic and Environmental Valuation
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Heterogeneous preferences for rural road investments and willingness to contribute — Yintu Bao, Ligao Bao, et al. · Applied Economics (2026) | TGRS Research Map | TGRS