Accommodating risk in the valuation of expected travel time savings

Valuation of travel time savings is a critical measure in transport infrastructure appraisal, traffic modelling and network performance. It has been recognised for some time that the travel times associated with repeated trips are subject to variation, and hence there is risk embedded in the treatment of expected travel time. In the context of the expected utility framework, we use a nonlinear probability weighting function to accommodate choice made under risk. Although the empirical findings suggest small differences between the value of expected travel time savings (VETTS) in the presence and absence of risk, the mean estimate does make a noticeable difference to time benefits when applied to real projects. By incorporating nonlinear probability weighting, our model reveals that the probabilities associated with specific travel times that are shown to respondents in the choice experiment are transformed, resulting in overweighting of outcomes with low probabilities and underweighting of outcomes with high probabilities. Copyright © 2011 John Wiley & Sons, Ltd.     

The existence, uniqueness and computation of an arc-based dynamic network user equilibrium formulation

In this paper, a dynamic user equilibrium traffic assignment model with simultaneous departure time/route choices and elastic demands is formulated as an arc-based nonlinear complementarity problem on congested traffic networks. The four objectives of this paper are (1) to develop an arc-based formulation which obviates the use of path-specific variables, (2) to establish existence of a dynamic user equilibrium solution to the model using Brouwer's fixed-point theorem, (3) to show that the vectors of total arc inflows and associated minimum unit travel costs are unique by imposing strict monotonicity conditions on the arc travel cost and demand functions along with a smoothness condition on the equilibria, and (4) to develop a heuristic algorithm that requires neither a path enumeration nor a storage of path-specific flow and cost information. Computational results are presented for a simple test network with 4 arcs, 3 nodes, and 2 origin–destination pairs over the time interval of 120 periods.     

Combining pickups and deliveries in vehicle routing – An assessment of carbon emission effects

This paper studies the effect on carbon emissions of consolidation of shipments on trucks. New positioning and communication technologies, as well as decision support systems for vehicle routing, enable better utilization of vehicle capacity, reduced travel distance, and thereby carbon emission reductions. We present a novel carbon emission analysis method that determines the emission savings obtained by an individual transport provider, who receives customer orders for outbound deliveries as well as pickup orders from supply locations. The transport provider can improve vehicle utilization by performing pickups and deliveries jointly instead of using separate trucks. In our model we assume that the transport provider minimizes costs by use of a tool that calculates detailed vehicle routing plans, i.e., an assignment of each transport order to a specific vehicle in the fleet, and the sequence of customer visit for each vehicle. We compare a basic set-up, in which pickups and deliveries are segregated and performed with separate vehicles, with two consolidation set-ups where pickups and deliveries may be mixed more or less freely on a single vehicle. By allowing mixing, the average vehicle load will increase and the total driven distance will decrease. To compare carbon emissions for the three set-ups, we use a carbon assessment method that uses the distance driven and the average load factor. An increase in the load factor can reduce part of the emission savings from consolidation. We find that emission savings are relatively large in case of small vehicles and for delivery and pickup locations that are relatively far from the depot. However, if a truck visits many demand and supply locations before returning to the depot, we observe negligible carbon emission decreases or even emission increases for consolidation set-ups, meaning that in such cases investing in consolidation through joint pickups and deliveries may not be effective. The results of our study will be useful for transport users and providers, policymakers, as well as vehicle routing technology vendors.     

Car ownership,travel and land use: a comparison of the US and Great Britain

This paper conducts an international comparative analysis of relationships between car ownership, daily travel and urban form. Using travel diary data for the US and Great Britain, we estimate models of car ownership and daily travel distance. Both a structural model with daily travel conditional upon car ownership and a reduced form model for daily travel, excluding car ownership, are estimated. Model results are similar, and show that differences in travel are explained by (1) differences in demographics between the two countries; (2) lower household income in Great Britain; (3) country specific differences in costs of car ownership and use, transport supply and other factors we have not been able to control. We find that metropolitan size affects travel only in the largest metropolitan areas of the US. Daily travel distance is inversely related to local population density, but the effect is much stronger for the US than Great Britain. We conclude that higher transport costs in Great Britain promote economizing behavior, which in turns leads to more consumption of local goods and services and more use of alternative transport modes.     

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.     

Behavioural intentions as predictors of very specific behaviour

This paper proposes an alternative approach to understanding travel behaviour —the study of behavioural intentions. The communality of this and the revealed behaviour approach are outlined and the use of controlled experimental methods illustrated in an analysis of empirical data on behavioural intentions of citizens with respect to changes in the levels of transport service, and the introduction of an area licensing scheme for travel in a central city area in Australia.This research was completed while Jordan Louviere was at Cambridge Systematics Inc., Boston, Massachusetts, U.S.A.     

Evaluation of public transport: Method for application in open planning

This paper discusses a method to evaluate scheduled, fixed-route public transport. One major evaluation criterion in the method is total travel time, subdivided into walking time, waiting time, time on vehicle, transfer time, and concealed waiting time. The other major criterion is costs incurred by a given supply of transport. In contrast with conventional methods, this method operates with real measures, i.e. real location (instead of traffic zones), real time (instead of average travel time), and real costs (instead of proxy-costs). The purpose is to produce relevant and easily understandable results suitable to open planning, for instance planning with citizen participation. Five examples of application of the method are given: (1) evaluation of changes in suburban bus services; (2) evaluation of geographical localities as regards public transport; (3) evaluation of circular bus routes; (4) evaluation of flexible work hours versus fixed work hours and, finally; (5) production of user information on transport service.The research on evaluation of public transport was carried out in collaboration between Aalborg Municipality and the University of Aalborg 1980–1981. It was funded by the Department of Education, the University of Aarhus, Aalborg Municipality, the University of Aalborg's Data Centre and the University of Aalborg. The translation of this summary paper from Danish into English was funded and carried out by the Transport and Road Research Laboratories, Crowthorne, England.The paper summarizes: Bent Flyvbjerg, Kjeld Kahr, Peter Bo Petersen and Johs. Vibe-Petersen (1981).Evaluation of Public Transport — Method for Application in Open Planning. Vol. I & II. Aalborg University Press, Aalborg, 402 pp. In Danish.     

Total cost analysis: An alternative to benefit-cost analysis in evaluating transportation alternatives

This paper explains the theory in support of total cost analysis (TCA) to compare transportation system alternatives. The full costs of each alternative are first aggregated, including travel time costs and monetizable environmental and social costs. Many costs which are considered on the benefits side of the equation in benefit-cost analysis (BCA) as "cost savings" are brought over to the costs side. Total cost differences among alternatives are then traded off against their estimated non-monetized benefits or impacts, just as a consumer trades off product quality against cost before deciding which product he or she will buy. One advantage of TCA over traditional BCA is that the concept of "total cost" is more easily understood by the public and by political decision-makers than BCA concepts such as "net present worth", "benefit-cost ratio" and "internal rate of return". A second advantage is that there is no suggestion that all "benefits" have been considered; decision-makers are free to use their own value judgements to trade off total cost against non-monetizable social, environmental and economic impacts, just as they trade off quality and convenience against cost when purchasing goods and services in their roles as consumers. The TCA approach is demonstrated in this paper through a case study of two systemwide alternatives for the Baltimore, MD urban area.     

Using longitudinal methods for analysis of a short-term transportation demonstration project

This paper documents an application of panel, or longitudinal data collection in the evaluation of a TSM (Transportation Systems Management) demonstration project. The project was a four-week demonstration of staggered work hours in downtown Honolulu during February–March 1988. The 4 wave panel survey elicited commuting experiences of approximately 2,000 downtown employees at two week intervals before and during the project. The sample involved both employees who participated in the project by shifting their work hours, and those who did not. The panel survey was augmented by floating-car observations of travel times on major routes into downtown Honolulu on the same four dates.The purpose of the analysis was to determine whether employee commute times were affected, and if so, how these changes were distributed among various employee segments. Two methods were used. First, travel time changes were estimated using paired t-tests. Second, regression equations were used to estimate project time savings as a function of trip length, route, and location of residence. Results show that travel time savings due to the project were typically small, less than ten percent. Nonparticipants experienced greater savings than participants, and some segments of participants experienced longer travel times during the project. The panel method proved to be an effective way to measure project travel time impacts and shows that the method is appropriate in short time applications.Presented at the Annual Meeting of Transportation Research Board, January 7–11. 1990, Washington, D.C.     

Excess commuting and modal choice

This paper reports results from research conducted to analyse the extent of excess commuting in Dublin, Ireland. The research differs from similar studies on excess commuting in two ways. First, a disaggregate modal choice analysis of excess commuting is undertaken for two time periods – 1991 and 2001. Second, sensitivity analysis is undertaken to explore the impact of changes in the density of the transport network for users of public and private transport. The results suggest that excess commuting is considerably greater for users of private transport implying the greater inefficiency of commuting associated with that mode. By way of contrast, capacity utilisation measures suggest the opposite indicating the difficulty of using these measures for policy-making. The results suggest also that the greater inter-mixing of jobs–housing functions has facilitated reductions in actual commuting costs as well as increasing the range of available trip possibilities over the study period. In terms of the sensitivity analysis, the results suggest that public transport users could achieve dramatic savings on their commute if the density of that network was increased considerably.     

Distance and time in intermodal goods transport networks in Europe: A generic approach

This paper is about distance and time as factors of competitiveness of intermodal transport. It reviews the relevance of the factors, evaluates time models in practice, compares network distances and times in alternative bundling networks with geometrically varied layouts, and points out how these networks perform in terms of vehicle scale, frequency and door-to-door time. The analysis focuses on intermodal transport in Europe, especially intermodal rail transport, but is in search for generic conclusions. The paper does not incorporate the distance and time results in cost models, and draws conclusions for transport innovation, wherever this is possible without cost modelling. For instance, the feature vehicle scale, an important factor of transport costs, is analysed and discussed.Distance and time are important factors of competitiveness of intermodal transport. They generate (direct) vehicle costs and – via transport quality – indirect costs to the customers. Clearly direct costs/prices are the most important performance of the intermodal transport system. The relevance of quality performances is less clarified. Customers emphasise the importance of a good match between the transport and the logistic system. In this framework (time) reliability is valued high. Often transport time, arrival and departure times, and frequency have a lower priority. But such conclusions can hardy be generalised. The range of valuations reflects the heterogeneity of situations. Some lack of clarity is obviously due to overlapping definitions of different performance types.The following parts of the paper are about two central fields of network design, which have a large impact on transport costs and quality, namely the design of vehicle roundtrips (and acceleration of transport speed) and the choice of bundling type: do vehicles provide direct services or run in what we call complex bundling networks? An example is the hub-and-spoke network. The objective of complex bundling is to increase vehicle scale and/or transport frequency even if network volumes are restricted. Complex bundling requires intermediate nodes for the exchange of load units. Examples of complex bundling networks are the hub-and-spoke network or the line network.Roundtrip and bundling design are interrelated policy fields: an acceleration of the roundtrip speed, often desirable from the cost point of view, can often only be carried out customer friendly, if the transport frequency is increased. But often the flow size is not sufficient for a higher frequency. Then a change of bundling model can be an outcome.Complex bundling networks are known to have longer average distances and times, the latter also due to the presence of additional intermediate exchange nodes. However, this disadvantage is – inside the limits of maximal vehicle sizes – overruled by the advantage of a restricted number of network links. Therefore generally, complex bundling networks have shorter total vehicle distances and times. This expression of economies of scale implies lower vehicle costs per load unit.The last part of the paper presents door-to-door times of load units of complex bundling networks and compares them with unimodal road transport. The times of complex bundling networks are larger than that of networks with direct connections, but nevertheless competitive with unimodal road transport, except for short distances.     

A new composite decision support framework for strategic and sustainable transport appraisals

This paper concerns the development of a new decision support framework for the appraisal of transport infrastructure projects. In such appraisals there will often be a need for including both conventional transport impacts as well as criteria of a more strategic and/or sustainable character. The proposed framework is based on the use of cost-benefit analysis featuring feasibility risk assessment in combination with multi-criteria decision analysis and is supported by the concept of decision conferencing. The framework is applied for a transport related case study dealing with the complex decision problem of determining the most attractive alternative for a new fixed link between Denmark and Sweden – the so-called HH-connection. Applying the framework to the case study made it possible to address the decision problem from an economic, a strategic, and a sustainable point of view simultaneously. The outcome of the case study demonstrates the decision making framework as a valuable decision support system (DSS), and it is concluded that appraisals of transport projects can be effectively supported by the use of the DSS. Finally, perspectives of the future modelling work are given.     

Trip chaining as a barrier to the propensity to use public transport

Trip chaining is a growing phenomenon in travel and activity behaviour. Individuals increasingly seek out opportunities to minimise the amount of travel required as part of activity fulfilment, given the competing demands on time budgets and their valuation of travel time savings. This search for ways of fulfilling (more) activities with less travel input has produced a number of responses, one of which is trip chaining. A particularly important policy implication of trip chaining is the potential barrier it creates in attracting car users to switch to public transport. This paper seeks to improve our understanding of trip chaining as a barrier to public transport use. A series of discrete choice models are estimated to identify the role that socio-economic and demographic characteristics of households have on the propensity to undertake trip chains of varying degrees of simplicity/complexity that involve use of the car or public transport with an embedded commuting or non-commuting primary purpose. Multinomial logit, nested logit and random parameter logit models are developed and contrasted to establish the gains in relaxing the strict conditions of the multinomial logit model.     

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.     

An assessment of the performance of the European long intermodal freight trains (LIFTS)

Intermodal rail/road freight transport has always been considered as a competitive alternative to its road freight counterpart in the European medium- to long-distance corridors (markets). Such consideration has been based on the increasing competitiveness of some innovative rail services and the existing and prospective performance of both modes in terms of the full social – internal or operational and external – costs. The most recent innovation of rail technologies and related services launched by some European railway companies, still at the conceptual level, is the Long Intermodal Freight Train (LIFT). This is supposed to be a block train operating in long-distance corridors (markets) with a substantial and regular freight demand.This paper develops analytical models for assessing the performance of the LIFTs, the already-operating Conventional Intermodal Freight Trains (CIFTs), and their road counterpart as well. The performance consists of the full – internal (private) and external – costs of the door-to-door delivery of loading units – containers, swap-bodies, and semi-trailers. The internal costs embrace the operational costs of the transport (rail and road) and intermodal terminal operators. The external costs include the costs of the impacts of door-to-door delivery of loading units on society and the environment. These negative externalities include noise, air pollution, traffic accidents, and congestion.The models are applied to a simplified version of intermodal and road transport system using inputs from the European freight transport sector. The aims are to compare the full costs of particular modalities in order to investigate the potential of the LIFTs as compared with the CIFTs in improving the internal efficiency of the rail freight sector and its competitiveness with respect to its road counterpart. In addition, the paper attempts to assess some effects on the potential modal shift of EU (European Union) transport policies on internalizing transport externalities.     

Costs of travel time uncertainty and benefits of travel time information: Conceptual model and numerical examples

A negative effect of congestion that tends to be overlooked is travel time uncertainty. Travel time uncertainty causes scheduling costs due to early or late arrival. The negative effects of travel time uncertainty can be reduced by providing travellers with travel time information, which improves their estimate of the expected travel time, thereby reducing scheduling costs. In order to assess the negative effects of uncertainty and the benefits of travel time information, this paper proposes a conceptual model of departure time choice under travel time uncertainty and information. The model is based on expected utility theory, and includes the variation in travel time, the quality of travel time information and travellers’ perception of the travel time. The model is illustrated by an application to the case of the A2 motorway between Beesd and Utrecht in the Netherlands.     

Capturing value of reliability through road pricing in congested traffic under uncertainty

Empirical studies showed that travel time reliability, usually measured by travel time variance, is strongly correlated with travel time itself. Travel time is highly volatile when the demand approaches or exceeds the capacity. Travel time variability is associated with the level of congestion, and could represent additional costs for travelers who prefer punctual arrivals. Although many studies propose to use road pricing as a tool to capture the value of travel time (VOT) savings and to induce better road usage patterns, the role of the value of reliability (VOR) in designing road pricing schemes has rarely been studied. By using road pricing as a tool to spread out the peak demand, traffic management agencies could improve the utility of travelers who prefer punctual arrivals under traffic congestion and stochastic network conditions. Therefore, we could capture the value of travel time reliability using road pricing, which is rarely discussed in the literature. To quantify the value of travel time reliability (or reliability improvement), we need to integrate trip scheduling, endogenous traffic congestion, travel time uncertainty, and pricing strategies in one modeling framework. This paper developed such a model to capture the impact of pricing on various costs components that affect travel choices, and the role of travel time reliability in shaping departure patterns, queuing process, and the choice of optimal pricing. The model also shows the benefits of improving travel time reliability in various ways. Findings from this paper could help to expand the scope of road pricing, and to develop more comprehensive travel demand management schemes.     

A combined land use-transportation model when zonal travel demand is endogenously determined

A combined transportation-land use model is proposed in this paper. Unlike other existing urban land use and transportation planning models in which a “fixed demand” for services is assumed to be known at the zonal level of an urban area, zonal travel demand is endogenously determined together with link congestion costs, optimal amounts of production and resulting efficient densities of land uses, once the transportation network is given. Some characteristics of alternative solutions are demonstrated. The proposed model represents progress over previous efforts in combining land use-transportation problems since the travel choice as to origin, destination and routes as well as amounts of goods to be produced at the optimal density of land uses are integrated into a consistent mathematical programming framework.     

Evaluation of exclusive bus lanes in a bi-modal degradable road network

In this paper, we proposed an evaluation method of exclusive bus lanes (EBLs) in a bi-modal degradable road network with car and bus transit modes. Link travel time with and without EBLs for two modes is analyzed with link stochastic degradation. Furthermore, route general travel costs are formulated with the uncertainty of link travel time for both modes and the uncertainty of waiting time at a bus stop and in-vehicle congestion costs for the bus mode. The uncertainty of bus waiting time is considered to be relevant to the degradation of the front links of the bus line. A bi-modal user equilibrium model incorporating travelers’ risk adverse behavior is proposed for evaluating EBLs. Finally, two numerical examples are used to illustrate how the road degradation level, travelers’ risk aversion level and the front link’s correlation level with the uncertainty of the bus waiting time affect the results of the user equilibrium model with and without EBLs and how the road degradation level affects the optimal EBLs setting scheme. A paradox of EBLs setting is also illustrated where adding one exclusive bus lane may decrease share of bus.     

Modelling the impact of alternative transport strategies upon social groups

In this paper, the application of a model representing the impact of interaction between transport costs and the location of housing, population, job employment, shopping and land is described. Two particular uses of the model are considered. Firstly, the effects of changing transport costs upon people of different social status in terms of money and time spent on travelling are examined and compared with results based upon the assumption that the location of population and employment are not responsive to changes in transport cost, as in the conventional transport demand model. Secondly, the effects of six land use‐transport policy sets are examined in terms of the impact upon urban morphology, and the opportunities and travel behaviour of the three social groups. The effects are also compared with the objectives of the strategies.