Commuters’ willingness-to-pay for improvement of transfer facilities in and around metro stations – A case study in Kolkata

Although several cities in India are developing the metro system, there are lacunas associated with transfer facilities in and around metro stations. The present work aims to investigate the perception of commuters of Kolkata city, India in terms of their willingness-to-pay (WTP) for improvement of transfer facilities. A stated preference survey instrument was designed to collect choice responses from metro commuters and the database was analysed by developing random parameter logit (RPL) models. The decomposition effects of various socioeconomic and trip characteristics on mean estimates were also investigated in random parameter logit models with heterogeneity. The work indicates significantly high WTP of metro commuters as compared to the average metro fare for improvement of various qualitative attributes of transfer facility such as ‘facility for level change’, ‘visual communication’, ‘pedestrian crossing’, and ‘pedestrian environment’. The WTP values are also found to vary across different groups of commuter formed on the basis of ‘trip purpose’, ‘monthly household income’, ‘station type’ and ‘metro fare’. ‘Work trip’ commuters are found to have higher WTP for improvement of access time, pedestrian environment and use of an escalator over the elevator. On the other hand, ‘high-income group’ commuters have shown higher WTP for improvement of access time, pedestrian crossing, and pedestrian environment. While ‘high fare group’ commuters have higher WTP for access time and pedestrian environment, heterogeneity is also observed in WTP for facility for level change, pedestrian crossing, and pedestrian environment across commuters using different ‘station type’ (underground, at-grade, and elevated). The findings from the study provide a basis for formulating policies for the improvement of transfer facilities in and around metro stations giving due attention to the preference of commuters having different socioeconomic and trip characteristics.     

Confidence intervals of willingness-to-pay for random coefficient logit models

Random coefficient logit (RCL) models containing random parameters are increasingly used for modelling travel choices. Willingness-to-pay (WTP) measures, such as the value of travel time savings (VTTS) are, in the case of RCL models estimated in preference space, ratios of random parameters. In this paper we apply the Delta method to compute the confidence intervals of such WTP measures, taking into account the variance–covariance matrix of the estimates of the distributional parameters. The same Delta method can be applied when the model is estimated in WTP space. Compared to simulation methods such as proposed by Krinsky and Robb, the Delta method is able to avoid most of the simulations by deriving partly analytical expressions for the standard errors. Examples of such computations are shown for different combinations of random distributions.     

Factors affecting car ownership and mode choice in rail transit-supported suburbs of a large Chinese city

As Chinese cities continue to grow rapidly and their newly developed suburbs continue to accommodate most of the enormous population increase, rail transit is seen as the key to counter automobile dependence. This paper examines the effects of rail transit-supported urban expansion using travel survey data collected from residents in four Shanghai suburban neighborhoods, including three located near metro stations. Estimated binary logit model of car ownership and nested logit model of commuting mode choice reveal that: (1) proximity to metro stations has a significant positive association with the choice of rail transit as primary commuting mode, but its association with car ownership is insignificant; (2) income, job status, and transportation subsidy are all positively associated with the probabilities of owning car and driving it to work; (3) higher population density in work location relates positively to the likelihood of commuting by the metro, but does not show a significant relationship with car ownership; (4) longer commuting distance is strongly associated with higher probabilities of riding the metro, rather than driving, to work; (5) considerations of money, time, comfort, and safety appear to exert measurable influences on car ownership and mode choice in the expected directions, and the intention to ride the metro for commuting is reflected in its actual use as primary mode for journey to work. These results strongly suggest that rail transit-supported urban expansion can produce important positive outcomes, and that this strategic approach can be effectively facilitated by transportation policies and land use plans, as well as complemented by timely provision of high quality rail transit service to suburban residents.     

The role of socio-economic,built environment and psychological factors in parental mode choice for their children in an Iranian setting

This research investigated the role of parental psychological and socio-economic factors as well as built environment for the choice of their children’s (primary school pupils, aged 7–9 years) travel mode to school in Rasht, Iran. A total of 1078 questionnaires were distributed (return rate of 80 percent) among pupils in nine primary schools in January 2014. A mixed logit (ML) model was employed due to its ability to test heterogeneity among parents and also to determine its possible sources. Results of random coefficient ML modelling showed that several psychological, socio-economic and built environment characteristics were significant factors in parental mode choice. Only walking time perception to school had a significant random normal distribution coefficient and no other psychological and socio-economic variable had a random effect. Further investigation by random coefficient analysis showed that the possible source of household preference heterogeneity could be to own two or more cars. Regarding psychological variables, strong parental worry about their children walking alone to school had a negative impact on allowing them to walk to school. Parents who evaluated poor contextual and design preconditions for walking tended to choose school service more than private car and walking. Parents with stronger environmental personal norms were more willing to allow their children to walk. The findings suggest that infrastructural measures, such as sidewalk facilities, neighborhood security and safety, encourage parents to allow children to walk to school. Information campaigns targeting environmental norms may increase walking among pupils in an Iranian setting.     

The valuation of commuter travel time savings for car drivers: evaluating alternative model specifications

The empirical valuation of travel time savings is a derivative of the ratio of parameter estimates in a discrete choice model. The most common formulation (multinomial logit) imposes strong restrictions on the profile of the unobserved influences on choice as represented by the random component of a preference function. As we progress our ability to relax these restrictions we open up opportunities to benchmark the values derived from simple (albeit relatively restrictive) models. In this paper we contrast the values of travel time savings derived from multinomial logit and alternative specifications of mixed (or random parameter) logit models. The empirical setting is urban car commuting in six locations in New Zealand. The evidence suggests that less restrictive choice model specifications tend to produce higher estimates of values of time savings compared to the multinomial logit model; however the degree of under-estimation of multinomial logit remains quite variable, depending on the context.     

Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings

In recent years we have seen important extensions of logit models in behavioural research such as incorporation of preference and scale heterogeneity, attribute processing heuristics, and estimation of willingness to pay (WTP) in WTP space. With rare exception, however, a non-linear treatment of the parameter set to allow for behavioural reality, such as embedded risk attitude and perceptual conditioning of occurrence probabilities attached to specific attributes, is absent. This is especially relevant to the recent focus in travel behaviour research on identifying the willingness to pay for reduced travel time variability, which is the source of estimates of the value of trip reliability that has been shown to take on an increasingly important role in project appraisal. This paper incorporates, in a generalised non-linear (in parameters) logit model, alternative functional forms for perceptual conditioning (known as probability weighting) and risk attitude in the utility function to account for travel time variability, and then derives an empirical estimate of the willingness to pay for trip time variability-embedded travel time savings as an alternative to separate estimates of time savings and trip time reliability. We illustrate the richness of the approach using a stated choice data set for commuter choice between unlabelled attribute packages. Statistically significant risk attitude parameters and parameters underlying decision weights are estimated for multinomial logit and mixed multinomial logit models, along with values of expected travel time savings.     

Development of railway station choice models to improve the representation of station catchments in rail demand models

ABSTRACT

This paper describes the development of railway station choice models suitable for defining probabilistic station catchments. These catchments can then be incorporated into the aggregate demand models typically used to forecast demand for new rail stations. Revealed preference passenger survey data obtained from the Welsh and Scottish Governments was used for model calibration. Techniques were developed to identify trip origins and destinations from incomplete address information and to automatically validate reported trips. A bespoke trip planner was used to derive mode-specific station access variables and train leg measures. The results from a number of multinomial logit and random parameter (mixed) logit models are presented and their predictive performance assessed. The models were found to have substantially superior predictive accuracy compared to the base model (which assumes the nearest station has a probability of one), indicating that their incorporation into passenger demand forecasting methods has the potential to significantly improve model predictive performance.     

Using nonparametrics to specify a model to measure the value of travel time

Using a range of nonparametric methods, the paper examines the specification of a model to evaluate the willingness-to-pay (WTP) for travel time changes from binomial choice data from a simple time–cost trading experiment. The analysis favours a model with random WTP as the only source of randomness over a model with fixed WTP which is linear in time and cost and has an additive random error term. Results further indicate that the distribution of log WTP can be described as a sum of a linear index fixing the location of the log WTP distribution and an independent random variable representing unobserved heterogeneity. This formulation is useful for parametric modelling. The index indicates that the WTP varies systematically with income and other individual characteristics. The WTP varies also with the time difference presented in the experiment which is in contradiction of standard utility theory.     

Understanding suburban travel demand: Flexible modelling with revealed and stated choice data

We analyse the choice of mode in suburban corridors using nested logit specifications with revealed and stated preference data. The latter were obtained from a choice experiment between car and bus, which allowed for interactions among the main policy variables: travel cost, travel time and frequency. The experiment also included parking cost and comfort attributes. The attribute levels in the experiment were adapted to travellers’ experience using their revealed preference information. Different model specifications were tested accounting for the presence of income effect, systematic taste variation, and incorporating the effect of latent variables. We also derived willingness-to-pay measures, such as the subjective value of time, that vary among individuals as well as elasticity values. Finally, we analysed the demand response to various policy scenarios that favour public transport use by considering improvements in level-of-service, fare reductions and/or increases in parking costs. In general, demand was shown to be more sensitive to policies that penalise the private car than those improving public transport.     

Nature of influence of out‐of‐vehicle time‐related attributes on transit attractiveness: a random parameters logit model analysis

This paper describes the nature of the impacts of walking distances and waiting time on transit use. The relative trade‐offs of walking and transfer components with other transit service attributes are also discussed. A total of 449 completed stated‐preference interviews were collected; with six observations from each respondent, the total number of observations was 2694. This data set was used to estimate the coefficients in different utility functions using a random parameters logit model. The results demonstrated that walking distances to and from transit stops have important and significant nonlinear negative influences on the attractiveness of transit. Transfer waiting time was also shown to have a significant nonlinear negative impact on transit attractiveness. The random parameters logit model had a better model fit than the standard logit model. Some of the findings obtained here are novel, while others are consistent with previous works. These findings have implications for both theory and practice. Copyright © 2014 John Wiley & Sons, Ltd.     

The value of travel time and reliability-evidence from a stated preference survey and actual usage

This research examined travel behavior of Managed Lane (ML) users to better understand the value travelers place on travel time savings and travel time reliability. We also highlight the importance of survey design techniques. These objectives were accomplished through a stated preference survey of Houston’s Katy Freeway travelers. Three stated choice experiment survey design techniques were tested in this study: Bayesian (D_b) efficient, random level attribute generation, and an adaptive random approach. Mixed logit models were developed from responses using each of those designs. The value of travel time savings (VTTSs) estimates do vary across the design strategies, with the VTTS estimates based on the D_b-efficient design being approximately half the estimates from the other two designs. However, among the three design strategies, the value of travel time reliability (VOR) was only significant in the D_b-efficient design.The estimated VTTS from actual Katy Freeway usage (as measured using actual tolls paid and travel time saved on the managed lanes) is $51/h. This likely also includes any value that travelers place on travel time reliability. In comparison, our combined estimate of VTTS and VOR based on the SP survey (D_b-efficient design) was $50/h, which is remarkably close to the estimate from the actual usage data. Based on our dataset, the D_b-efficient design technique proved superior to the other two techniques. Finally, this research also supports the importance of including both travel time and travel time reliability parameters when estimating the willingness to pay for, and therefore benefits derived from, ML travel.     

Modeling travel mode choice of young people with differentiated E-hailing ride services in Nanjing China

E-hailing ride service (ERS) has become increasingly popular globally and is changing the urban mobility landscape. There is insufficient research effort in understanding the impact of ERS on travel behavior, in particular among young people. This paper aims to start filling that research gap by first collecting mode choice preference data through a stated preference survey in City of Nanjing, China and then applying nested logit (NL) models and a series of post-estimation analysis to address a number of key research questions of mode choice behavior without and with ERS. Three ERS modes are considered in the Chinese context: DiDi Taxi (D-Taxi), DiDi Express (D-Express), and DiDi Premier (D-Premier), all provided by DiDi Chuxing, the dominant ERS service provider in China. The study finds that age makes little difference in mode choice preference when ERS is introduced between the two age groups considered (18–30 and 31–45). The study results also suggest that young travelers are naturally drawn to ERS for what it represents (a technology innovation) and its business (pricing) model. ERS appears to be a competitive alternative to the conventional modes especially when they are under performed. The study also finds that ERS will likely increase vehicle kilometers traveled (VKT) considerably, which will lead to increase in on-road vehicular emissions, unless some mechanism to switch users to ridesharing is in place.     

The Signs of the Times: Imposing a Globally Signed Condition on Willingness to Pay Distributions

A feature of recent developments in choice models that enable estimation of the distribution of willingness to pay (WTP) is that the sign of the distribution can change over the range. Behaviourally this often makes little sense for attributes such as travel time on non-discretionary travel, despite a growing recognition of positive utility over some travel time ranges. This can in part be attributed to the analytical distribution that is selected (except the cumbersome lognormal), many of which are unconstrained over the full range. Although a number of analysts have imposed constraints on various distributions for random parameters that can satisfy the single-sign condition, these restrictions are, with rare exception, only satisfied for the mean and the standard deviation estimates of a random parameter. When heterogeneity around the mean and/or heteroscedasticity around the standard deviation is allowed for, however, the constraint condition is often not satisfied. Given the popularity of distributions other than the lognormal, in order to satisfy the sign condition under the most general form of parameterisation, we need to impose a global sign condition. In this paper we show how this might be achieved in the context of the valuation of travel time savings for car commuters choosing amongst an offered set of route-specific travel times and costs. We illustrate the impact of the constraint under a globally constrained Rayleigh distribution for total travel time parameterisation, contrasting the evidence with a multinomial logit model and a range of other distributional assumptions within the mixed logit framework. Discussions with Bill Greene, John Rose, Ken Train and especially Juan de Dios Ortuzar have been invaluable as have the comments of referees.     

Valuing reductions in environmental pollution in a residential location context

A stated preference ranking experiment is designed to estimate the willingness-to-pay (WTP) for reducing the amount of atmospheric pollution in a group-based residential location context. Important issues are the proper definition of the context and the variable metric for the environmental attribute. Sample members were asked to rank 10 options arising from variations in the attributes travel time to work and to study, rent of the house and an environmental attribute (the number of days of Alert, in terms of concentration of PM₁₀, at a dwelling’s location). Multinomial logit models based on a consistent microeconomic framework were estimated for various stratifications of the data (income, pollution sensitivity, and type of dwelling currently inhabited). From these subjective values of time and WTP were derived for reductions in the number of days of alert and hence the amount of pollutant concentration at a given location. The WTP came out at about 1% of the family income for reducing one contingence day per year; this is approximately 60% higher than an estimate reported for the city of Edmonton, Canada, but the average PM₁₀ concentration in Santiago is about six times higher.     

Access to and competition between airports: a case study for the San Francisco Bay area

In this paper (nested) logit models that describe the combined access mode-airport-choice are estimated. A three level nested logit model is rejected. A two level nested logit model with the airport choice at the top level and the access mode choice at the lower level is preferred. From the estimation results, it is concluded that business travelers have a higher value of time than leisure travelers. In the (conditional) access mode choice, leisure travelers have a higher access cost elasticity (in absolute value), while business travelers have a higher access time elasticity (in absolute value). In general, access time is of large importance in the competition between airports in a region.     

Assuring finite moments for willingness to pay in random coefficient models

Random coefficient models such as mixed logit are increasingly being used to allow for random heterogeneity in willingness to pay (WTP) measures. In the most commonly used specifications, the distribution of WTP for an attribute is derived from the distribution of the ratio of individual coefficients. Since the cost coefficient enters the denominator, its distribution plays a major role in the distribution of WTP. Depending on the choice of distribution for the cost coefficient, and its implied range, the distribution of WTP may or may not have finite moments. In this paper, we identify a criterion to determine whether, with a given distribution for the cost coefficient, the distribution of WTP has finite moments. Using this criterion, we show that some popular distributions used for the cost coefficient in random coefficient models, including normal, truncated normal, uniform and triangular, imply infinite moments for the distribution of WTP, even if truncated or bounded at zero. We also point out that relying on simulation approaches to obtain moments of WTP from the estimated distribution of the cost and attribute coefficients can mask the issue by giving finite moments when the true ones are infinite.     

Dynamic ride sharing using traditional taxis and shared autonomous taxis: A case study of NYC

This study analyzes the potential benefits and drawbacks of taxi sharing using agent-based modeling. New York City (NYC) taxis are examined as a case study to evaluate the advantages and disadvantages of ride sharing using both traditional taxis (with shifts) and shared autonomous taxis. Compared to existing studies analyzing ride sharing using NYC taxi data, our contributions are that (1) we proposed a model that incorporates individual heterogeneous preferences; (2) we compared traditional taxis to autonomous taxis; and (3) we examined the spatial change of service coverage due to ride sharing. Our results show that switching from traditional taxis to shared autonomous taxis can potentially reduce the fleet size by 59% while maintaining the service level and without significant increase in wait time for the riders. The benefit of ride sharing is significant with increased occupancy rate (from 1.2 to 3), decreased total travel distance (up to 55%), and reduced carbon emissions (up to 866 metric tonnes per day). Dynamic ride sharing, wich allows shared trips to be formed among many groups of riders, up to the taxi capacity, increases system flexibility. Constraining the sharing to be only between two groups limits the sharing participation to be at the 50–75% level. However, the reduced fleet from ride sharing and autonomous driving may cause taxis to focus on areas of higher demands and lower the service levels in the suburban regions of the city.     

Valuing crowding in public transport: Implications for cost-benefit analysis

This paper investigates the valuation of crowding in public transport trips and its implications in demand estimation and cost-benefit analysis. We use a choice-based stated preference survey where crowding levels are represented by means of specially designed pictures, and use these data to estimate flexible discrete choice models. We assume that the disutility associated with travelling under crowded conditions is proportional to travel time. Our results are consistent with and extend previous findings in the literature: passenger density has a significant effect on the utility of travelling by public transport; in fact, the marginal disutility of travel time in a crowded vehicle (6 standing-passengers/m²) is 2.5 times higher than in a vehicle with available seats. We also compare the effects of different policies for improving bus operations, and the effect of adding crowding valuation in cost-benefit analysis. In doing that, we endogenise the crowding level as the result of the equilibrium between demand and supplied bus capacity. Our results indicate that important benefits may be accrued from policies designed to reduce crowding, and that ignoring crowding effects significantly overestimate the bus travel demand the benefits associated with pure travel time reductions.     

An examination of factors affecting propensities to use bicycle and pedestrian facilities in suburban locations

The US federal Congestion Mitigation and Air Quality program was created to fund transportation projects that have the potential to contribute to the attainment or maintenance of the National Ambient Air Quality Standards. This study evaluates a random sample of eight suburban bicycle and pedestrian facilities funded by the Congestion Mitigation and Air Quality Program in the Chicago metro area. Users of these facilities were randomly sampled using a “time-based” user sampling approach and surveyed in intercept mode to implement a recall-based evaluation design. A random intercept logit model was used to explain variations in the propensity to switch from single occupant vehicle use to bicycling or walking, using attributes of users and sites. The analysis shows relatively low usage levels but that substitution of motorized modes have resulted, potentially leading to improved air quality outcomes.     

Parameter transfer of common-metric attributes in choice analysis: implications for willingness to pay

There is a growing literature that promotes the presence of a mix of compensatory and semi-compensatory processing strategies in the way that individuals evaluate packages of attributes in real or hypothetical markets, and make choices. This paper proposes a specification for the utility form in a choice model to test if, given a pair of attributes with a common-metric (e.g., components of travel time or cost), the attribute with the dominating level defines the marginal (dis)utility that is assigned to both attributes. We refer to this processing strategy as a parameter transfer rule. We use a stated choice data set, in the context of car driving individuals choosing between tolled and non-tolled routes, to estimate a mixed logit model which incorporates the presence of the parameter transfer rule and the conventional fully compensatory rule, both existing up to a probability. We find that if this parameter transfer heuristic is part of the mix, the WTP is more than 30% higher, on average, than when only a fully compensatory rule is imposed. We also contrast the parameter transfer rule with other semi-compensatory heuristics which have been investigated in other papers, and show that the finding adds further support to the accumulating evidence that a semi-compensatory attribute processing rules tend to result in higher mean WTP estimates compared to the fully compensatory attribute processing rule.