Disaggregated behavioral responses to willingness-to-pay for the electronic levy in Ghana

Abstract

This study investigates the disaggregated behavioral responses of mobile money users' willingness to pay for electronic levy payments in Ghana. We use cross-sectional survey primary data and a probit regression estimation technique with its associated average marginal effects and check robustness with a linear probability model. The evidence from the study indicates that the disaggregated behavioral factors that drive willingness to pay for the e-levy include individuals maintaining their current levels of electronic fund transfers, the intention to increase their electronic fund transactions, and intention to stop using electronic fund transfers that attract the e-levy. Beyond the disaggregated behavioral responses, psychological (e.g., trust in government) and socioeconomic factors (individual income and gender) are identified as important drivers of willingness to pay for the e-levy. We suggest that policies around e-levies must not only focus on individual behavioral responses alone, as the drivers include behavioral, psychological, and socioeconomic factors.

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