Property damage and loss from road traffic accidents are a major concern in developing countries; thus, studies on accident damage in such countries may include more latent factors. This study aims to examine the effect of psychological perspectives and sociodemographic status on drivers' willingness-to-pay (WTP) for road accident risk reduction, using confirmatory factor analysis (CFA) and the random parameters multinomial logit model with heterogeneity in means and variances (RPMNLHMV). The CFA results from interviews with 1650 car drivers in Thailand demonstrate that concepts of the theory of planned behavior and health access process approach are key factors for describing drivers' behavioral intention and WTP. The RPMNLHMV results indicate that drivers' demographics affected drivers' WTP to reduce road accidents, and psychological perspectives were also found to have an influence on WTP. The results also reveal unobserved characteristics that could affect drivers' WTP. The study concludes that ignoring unobserved heterogeneity in studies on WTP to reduce road accidents can lead to biased results and neglect important influential factors. The methodological approaches applied herein offer another layer of insight into unobserved characteristics in road accident valuation. These findings could be used to provide relevant authorities practical insights for policy development on road accident mitigation and road safety education programs in accordance with drivers' characteristics.
Keywords: confirmatory factor analysis; demographics; psychological perspectives; unobserved heterogeneity; willingness-to-pay.