Values of travel time in Europe: Review and meta-analysis

This paper reports the most extensive meta-analysis of values of time yet conducted, covering 3109 monetary valuations assembled from 389 European studies conducted between 1963 and 2011. It aims to explain how valuations vary across studies, including over time and between countries. In addition to the customary coverage of in-vehicle time in review studies, this paper covers valuations of walk time, wait time, service headway, parking space search time, departure time switching, time in congested traffic, schedule delay early and late, mean lateness and the standard deviation of travel time. Valuations are found to vary with type of time, GDP, distance, journey purpose, mode, the monetary numeraire and a number of factors related to estimation. Model output values of time compare favourably with earnings data, replicate well official recommended values obtained from major national studies, and are transferable across countries. These implied monetary values serve as very useful benchmarks against which new evidence can be assessed and the meta-model provides parameters and values for countries and contexts where there is no other such evidence.     

Mode choice and travel distance joint models in school trips

We test a copula-based joint discrete–continuous model to unravel mode choice and travel distance decisions in a joint framework for school trips. This framework explicitly accounts for common unobserved factors that may affect both the mode choice and travel distance. Joint estimation of the models makes a significant difference in the effect of travel distance on willingness to walk to school. The absolute value of the travel distance coefficient in the mode choice model increases by 22% when a joint formulation is adopted instead of the conventional single estimations. We find a significant decrease of 19% in the coefficient of travel safety perception in the joint mode choice model compared to the single model. This underscores the impact of model specification, in terms of the variable effect interpretation and policy assessments. The effect magnitude of several policy-sensitive variables is discussed and compared with previous studies. Particularly, we indicate that the probability of walking is reduced by 0.85% due to a 1% increase in travel distance; accordingly, it propels parents to select non-active modes, particularly school bus. This study also demonstrates how addressing parental concerns about travel safety could double the propensity to walk to school.     

On the use of “average delay” as a measure of train reliability

We investigate how passengers on long-distance trains value unexpected delays relative to scheduled travel time and travel cost. For scheduled services with high reliability and long headways, the value of delays is most commonly assumed to be proportional to the average delay. By exploring how the valuation of train delays depends on delay risk and delay length, using three different stated choice data sets, we find that the “average delay” approach does not hold: the disutility increases slower than linearly in the delay risk. This means that using the average delay as a performance indicator, a guide for operations planning or for investment appraisal will underestimate the value of small risks of long delays relative to large risks for short delays. It also means that estimated valuations of “average delay” will depend on the delay risk level: valuations will be higher the lower the risk levels in the study are.     

Using demand elasticities from disaggregate mode choice models

Three of the most highly regarded disaggregate mode split models incorporate very different estimates of the responsiveness, or elasticity, of mode choice to changes in auto travel times and costs. These differences appear to be due in part to the varying specifications used by the model, and particularly whether certain variables (such as a dummy variable for CBD destinations or automobile ownership) are included in addition to the more traditional variables (such as travel time, cost, and household income). More research is needed on the implications of the theory of traveler choices for model specification and the effect of alternative, but theoretically justifiable, specifications on elasticity estimates. Until this research reduces our uncertainty about the elasticity of demand, analysts evaluating transportation policies should assess the sensitivity of their results to the range of plausible elasticities or models.     

An integrated Bayesian approach for passenger flow assignment in metro networks

This paper proposes an integrated Bayesian statistical inference framework to characterize passenger flow assignment model in a complex metro network. In doing so, we combine network cost attribute estimation and passenger route choice modeling using Bayesian inference. We build the posterior density by taking the likelihood of observing passenger travel times provided by smart card data and our prior knowledge about the studied metro network. Given the high-dimensional nature of parameters in this framework, we apply the variable-at-a-time Metropolis sampling algorithm to estimate the mean and Bayesian confidence interval for each parameter in turn. As a numerical example, this integrated approach is applied on the metro network in Singapore. Our result shows that link travel time exhibits a considerable coefficient of variation about 0.17, suggesting that travel time reliability is of high importance to metro operation. The estimation of route choice parameters conforms with previous survey-based studies, showing that the disutility of transfer time is about twice of that of in-vehicle travel time in Singapore metro system.     

On the income elasticity of the value of travel time

Transport infrastructure is long-term and in appraisal it is necessary to value travel time savings for future years. This requires knowing how the value of time (VTT) will develop over time as incomes grow. This paper investigates if the cross-sectional income elasticity of the VTT is equal to inter-temporal income elasticity. The study is based on two identical stated choice experiments conducted with a 13 year interval. Results indicate that the relationship between income and the VTT in the cross-section has remained unchanged over time. As a consequence, the inter-temporal income elasticity of the VTT can be predicted based on cross-sectional income elasticity. However, the income elasticity of the VTT is not a constant but increases with income. For this reason, the average income elasticity of the VTT in the cross-sections has increased between the two survey years and can be expected to increase further over time.     

The value of time and external benefits in bicycle appraisal

We estimate the value of time savings, different cycling environments and additional benefits in cost-benefit analysis of cycling investments. Cyclists’ value of travel time savings turns out to be high, considerably higher than the value of time savings on alternative modes. Cyclists also value other improvements highly, such as separated bicycle lanes. As to additional benefits of cycling improvements in the form of health and reduced car traffic, our results do not support the notion that these will be a significant part in a cost-benefit analysis. Bicyclists seem to take health largely into account when making their travel choices, implying that it would be double-counting to add total health benefits to the analysis once the consumer surplus has been correctly calculated. As to reductions in car traffic, our results indicate that the cross-elasticity between car and cycle is low, and hence benefits from traffic reductions will be small. However, the valuations of improved cycling speeds and comfort are so high that it seems likely that improvements for cyclists are cost-effective compared to many other types of investments, without having to invoke second-order, indirect effects. In other words, our results suggest that bicycle should be viewed as a competitive mode of travel and not primarily as a means to achieve improved health or reduced car traffic.     

Understanding transport mode choice for commuting: the role of affect

This study examines the relationship between positive and negative user valence and transport mode choice behaviour. We integrate latent attitudes ‘affect’ and ‘salience’ into transport mode choice models using the framework of integrated choice and latent variable modelling and simultaneous maximum likelihood estimation methods. The results are consistent with findings in similar travel behaviour and behavioural economics literature. The study extends the findings of previous research and has demonstrated that user sentiments about public transport mode and salient public transport experiences have a significant impact on travel mode choice behaviour. It was found that private motorised users are more sensitive to overcrowding and anti-social behaviours on PT than active and PT travellers. Key attitudinal indicators influencing individual transport choice behaviour are established to guide public policy. The key indicators of Affect and Salience must be analysed and addressed through public policy to enhance PT user experience and develop services and facilities to increase the utility of PT in-vehicle travel time.     

Consistency and fungibility of monetary valuations in transport: An empirical analysis of framing and mental accounting effects

Governments around the world use monetised values of transport externalities to undertake project appraisal and cost–benefit analysis. However, because different types of benefits are monetised (e.g., travel time savings, preventing statistical fatalities, reliability, etc.) the question naturally arises as to whether they are consistent. That is, whether a “dollar is a dollar” as welfare economics requires, or whether spending money in one area carries a different disutility from spending money in another area. This would equate to a violation of fungibility, which is the property of a good or a commodity whose individual units are capable of mutual substitution. The view that money is not fungible is explained in behavioural economics through theories of framing and mental accounting. This paper describes the results of a stated choice experiment designed to test the fungibility and consistency of monetary valuations in transport. From a nationally representative sample, we elicit direct values for the three pairwise trade-offs between travel time, travel cost, and safety. We then show that in the context of our analysis, any trade-offs inferred on the basis of other trade-offs, as is common practice (e.g. inferring a safety vs time trade-off on the basis of monetary valuations for time and safety), produces biased results, suggesting that the assumption of fungibility does not hold. Specifically, we find that time is valued more highly when valued directly by cost than when traded with safety, and the reverse is true for safety.     

A mixed Bayesian network for two-dimensional decision modeling of departure time and mode choice

The modeling of travel decision making has been a popular topic in transportation planning. Previous studies focused on random-utility discrete choice models and machine learning methods. This paper proposes a new modeling approach that utilizes a mixed Bayesian network (BN) for travel decision inference. The authors use a predetermined BN structure and calculate priori and posterior probability distributions of the decision alternatives based on the observed explanatory variables. As a “utility-free” decision inference method, the BN model releases the linear structure in the utility function but assumes the traffic level of service variables follow multivariate Gaussian distribution conditional on the choice variable. A real-world case study is conducted by using the regional travel survey data for a two-dimensional decision modeling of both departure time choice and travel mode choice. The results indicate that a two-dimensional mixed BN provides better accuracy than decision tree models and nested logit models. In addition, one can derive continuous elasticity with respect to each continuous explanatory variable for sensitivity analysis. This new approach addresses a research gap in probabilistic travel decision making modeling as well as two-dimensional travel decision modeling.     

Bridge and tunnel toll elasticities in New York

In 1992, the authors carried out a statistical analysis of Triborough Bridge and Tunnel Authority (TBTA) crossings in New York City, to determine the impact of toll increases on traffic volumes and revenue. Using twelve years of monthly time-series data, we developed a set of multiple regression models that estimated traffic volumes on each TBTA bridge and tunnel as a function of the toll level and other explanatory variables. In most cases, the estimated toll elasticities were negative and much less than 1.0 in absolute value; the median toll elasticity for automobiles was found to be –0.10. Our finding that automobile travel demand is highly inelastic with respect to toll rates is consistent with most previous travel demand studies.     

Estimating the bus user time benefits of implementing a median busway: Methodology and case study

This paper presents a general framework to estimate the bus user time benefits of a median busway including the effects on travel time and access time. Unlike previous models, we take into account the effects of geometry and the interaction with the demand structure. Models for predicting the bus in-vehicle time benefits of a median dual carriageway busway against mixed traffic condition on 2 and 3 lanes roads are estimated using data from a case study in Santiago (Chile), using a bus travel time model empirically estimated and considering different base case situations, including mixed traffic operations and bus lanes. Results of the application show that the expected in-vehicle time savings of a median busway might be reduced by access time losses due to increased walking distances and road crossing delays. Also, that net time benefits can vary significantly according to the base situation and the structure of demand considered. These findings point out to the need of including a wider set of impacts when studying the benefits of median busways, beyond in-vehicle time savings only. The empirical work presented here is completely based on passive data coming from GPS and smartcards, what makes easier and cheaper to conduct this type of analysis as well as to do it with a comprehensive scope at an early stage of the development of a BRT project. This framework can be extended to other types of dedicated bus lanes provided that a corresponding bus travel time savings model is available.     

Preferences of travellers for using automated vehicles as last mile public transport of multimodal train trips

In the recent years many developments took place regarding automated vehicles (AVs) technology. It is however unknown to which extent the share of the existing transport modes will change as result of AVs introduction as another public transport option. This study is the first where detailed traveller preferences for AVs are explored and compared to existing modes. Its main objective is to position AVs in the transportation market and understand the sensitivity of travellers towards some of their attributes, focusing particularly on the use of these vehicles as egress mode of train trips. Because fully-automated vehicles are not yet a reality and they entail a potentially high disruptive way on how we use automobiles today, we apply a stated preference experiment where the role of attitudes in perceiving the utility of AVs is particularly explored in addition to the classical instrumental variables and several socio-economic variables. The estimated discrete choice model shows that first class train travellers on average prefer the use of AVs as egress mode, compared to the use of bicycle or bus/tram/metro as egress. We therefore conclude that AVs as last mile transport between the train station and the final destination have most potential for first class train travellers. Results show that in-vehicle time in AVs is experienced more negatively than in-vehicle time in manually driven cars. This suggests that travellers do not perceive the theoretical advantage of being able to perform other tasks during the trip in an automated vehicle, at least not yet. Results also show that travellers’ attitudes regarding trust and sustainability of AVs are playing an important role in AVs attractiveness, which leads to uncertainty on how people will react when AVs are introduced in practice. We therefore state the importance of paying sufficient attention to these psychological factors, next to classic instrumental attributes like travel time and costs, before and during the implementation process of AVs as a public transport alternative. We recommend the extension of this research to revealed preference studies, thereby using the results of field studies.     

The digital revolution and worthwhile use of travel time: implications for appraisal and forecasting

Savings in travel time and more specifically their monetary value typically constitute the main benefit to justify major investment in transport schemes. However, worthwhile use of travel time is an increasingly prominent phenomenon of the digital age. Accordingly, questions are increasingly being asked regarding whether values of time used by countries around the world based on their appraisal approaches are too high. This paper offers the most comprehensive examination of our theoretical and empirical understandings of international appraisal approaches and how they account for worthwhile use of travel time. It combines the economics perspective with wider social science insight and reaches the conclusion that past revolutions in transport that have made longer and quicker journeys possible are now joined by a digital revolution that is reducing the disutility of travel time. This revolution offers potential economic benefit that comes at a fraction of the cost of major investments in transport that are predicated on saving travel time. The paper highlights the challenges faced in both current and indeed potential alternative future appraisal approaches. Such challenges are rooted in the difficulty of measuring time use and productivity with sufficient accuracy and over time to credibly account for how travel time factors into the economic outcomes from social and working practices in the knowledge economy. There is a need for further research to: establish how improvements in the opportunities for and the quality of worthwhile use of travel time impact on the valuation of travel time savings for non-business travel; improve our understanding of how productive use of time impacts on the valuation of time savings for business travellers; and estimate how these factors have impacted on the demand for different modes of travel.     

Where Is My Bus? Impact of mobile real-time information on the perceived and actual wait time of transit riders

In order to attract more choice riders, transit service must not only have a high level of service in terms of frequency and travel time but also must be reliable. Although transit agencies continuously work to improve on-time performance, such efforts often come at a substantial cost. One inexpensive way to combat the perception of unreliability from the user perspective is real-time transit information. The OneBusAway transit traveler information system provides real-time next bus countdown information for riders of King County Metro via website, telephone, text-messaging, and smart phone applications. Although previous studies have looked at traveler response to real-time information, few have addressed real-time information via devices other than public display signs. For this study, researchers observed riders arriving at Seattle-area bus stops to measure their wait time while asking a series of questions, including how long they perceived that they had waited.The study found that for riders without real-time information, perceived wait time is greater than measured wait time. However, riders using real-time information do not perceive their wait time to be longer than their measured wait time. This is substantiated by the typical wait times that riders report. Real-time information users say that their average wait time is 7.5 min versus 9.9 min for those using traditional arrival information, a difference of about 30%. A model to predict the perceived wait time of bus riders was developed, with significant variables that include the measured wait time, an indicator variable for real-time information, an indicator variable for PM peak period, the bus frequency in buses per hour, and a self-reported typical aggravation level. The addition of real-time information decreases the perceived wait time by 0.7 min (about 13%).A critical finding of the study is that mobile real-time information reduces not only the perceived wait time, but also the actual wait time experienced by customers. Real-time information users in the study wait almost 2 min less than those arriving using traditional schedule information. Mobile real-time information has the ability to improve the experience of transit riders by making the information available to them before they reach the stop.     

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.     

CO2 emissions: Are land-use changes enough for California to reduce VMT? Specification of a two-part model with instrumental variables

With vehicle miles of travel increasing at a faster pace than population, one strategy being actively pursued by both state and local governments is compact development. California recently passed legislation that aggressively promotes sustainability by endorsing and rewarding compact development. Likewise, the California Air Resources Board has set a statewide reduction target of 5MMT of greenhouse gas reductions from land use, based largely on achieving compact development patterns. In this paper, we use a multivariate two-part model with instrumental variables, which corrects for residential location self-selection bias. We use a much larger and more geographically representative travel survey on household travel patterns and socio-economic characteristics than represented in previous California studies; this allows us to robustly consider other influences on travel. Our results indicate that, all else equal, a 10% in residential density would reduce VMT by 1.9%. This elasticity is larger than the reported in previous econometric studies for the US, and specifically for California. However, as we show, the magnitude of this impact is still low considering reasonable ranges for policies aimed to increase residential density.     

Explaining “peak car” with economic variables

Many western countries have seen a plateau and subsequent decrease of car travel during the 21st century. What has generated particular interest and debate is the statement that the development cannot be explained by changes in traditional explanatory factors such as GDP and fuel prices. Instead, it has been argued, the observed trends are indications of substantial changes in lifestyles, preferences and attitudes to car travel; what we are experiencing is not just a temporary plateau, but a true “peak car”. However, this study shows that the traditional variables GDP and fuel price are in fact sufficient to explain the observed trends in car traffic in all the countries included in our study: the United States, France, the United Kingdom, Sweden and (to a large extent) Australia and Germany. We argue that the importance of the fuel price increases in the early 2000s has been underappreciated in the studies that shaped the later debate. Results also indicate that GDP elasticities tend to decrease with rising GDP, and that fuel price elasticities tend to increase at high price levels and during periods of rapid price increases.     

Long-term trends in domestic US passenger travel: the past 110 years and the next 90

Based upon a long-term historical data set of US passenger travel, a model is estimated to project aggregate transportation trends through 2100. One of the two model components projects total mobility (passenger-km traveled) per capita based on per person GDP and the expected utility of travel mode choices (logsum). The second model component has the functional form of a logit model, which assigns the projected travel demand to competing transportation modes. An iterative procedure ensures the average amount of travel time per person to remain at a pre-specified level through modifying the estimated value of time. The outputs from this model can be used as a first-order estimate of a future benchmark against which the effectiveness of various transportation policy measures or the impact of autonomous behavioral change can be assessed.     

Explaining light vehicle demand evolution in interurban toll roads: a dynamic panel data analysis in Spain

Tolls have increasingly become a common mechanism to fund road projects in recent decades. Therefore, improving knowledge of demand behavior constitutes a key aspect for stakeholders dealing with the management of toll roads. However, the literature concerning demand elasticity estimates for interurban toll roads is still limited due to their relatively scarce number in the international context. Furthermore, existing research has left some aspects to be investigated, among others, the choice of GDP as the most common socioeconomic variable to explain traffic growth over time. This paper intends to determine the variables that better explain the evolution of light vehicle demand in toll roads throughout the years. To that end, we establish a dynamic panel data methodology aimed at identifying the key socioeconomic variables explaining changes in light vehicle demand over time. The results show that, despite some usefulness, GDP does not constitute the most appropriate explanatory variable, while other parameters such as employment or GDP per capita lead to more stable and consistent results. The methodology is applied to Spanish toll roads for the 1990–2011 period, which constitutes a very interesting case on variations in toll road use, as road demand has experienced a significant decrease since the beginning of the economic crisis in 2008.