The value of travel time variance

This paper considers the value of travel time variability under scheduling preferences that are defined in terms of linearly time varying utility rates associated with being at the origin and at the destination. The main result is a simple expression for the value of travel time variability that does not depend on the shape of the travel time distribution. The related measure of travel time variability is the variance of travel time. These conclusions apply equally to travellers who can freely choose departure time and to travellers who use a scheduled service with fixed headway. Depending on parameters, travellers may be risk averse or risk seeking and the value of travel time may increase or decrease in the mean travel time.     

How much is too much for tolled road users: Toll saturation and the implications for car commuting value of travel time savings?

The current practice of forecasting the demand for new tolled roads typically assumes that car users are prepared to pay a higher toll for a shorter journey, and they will keep doing so as long as the toll cost is not higher than their current value of travel time savings. Practice ignores the possibility that there could be a point when motorists stop driving on toll roads due to a toll budget constraint. The unconstrained toll budget assumption may be valid in networks where the addition of a new toll road does not result in a binding budget constraint that car users may have for using toll roads (although it could also be invoked for existing tolled routes through a reduction in use of a tolled route). In a road network like Sydney which offers a growing number of (linked) tolled roads, the binding budget constraint may be invoked, and hence including additional toll links might in turn reduce the car users’ willingness to pay for toll roads to save the same amount of travel time. When this occurs, car users are said to reach a toll saturation point (or threshold) and begin to consider avoiding one or more toll roads. Whilst toll saturation has important implications for demand forecasting and planning of toll roads, this type of behaviour has not been explored in the literature. We investigate the influence that increasing toll outlays has on preferences of car commuters to use one or more tolled roads as the number of tolled roads increases. The Sydney metropolitan area offers a unique laboratory to test this phenomenon, with nine tolled roads currently in place and another five in planning. The evidence supports the hypothesis that the value of travel time savings decreases as a consequence of toll saturation.     

Meta-analysis of UK values of travel time: An update

Numerous travel demand studies have been carried out over the past five decades, many of which produce estimates of the value of travel time. This includes a rich body of largely unpublished evidence, which can provide valuable insights into the impact of variables such as GDP, travel distance, purpose and mode on this critical parameter for transport modelling and appraisal. The work reported in this paper updates and extends our previous meta-analyses of UK values of time ( [Wardman, 1998], [Wardman, 2001a] and [Wardman, 2004]) by adding recent studies and widening the range of explanatory variables included. Our current research covers 226 studies carried out between 1960 and 2008, yielding a total of 1749 valuations (a 50% increase relative to our previous work) and making this the largest data set of its kind to the best of our knowledge. This is also the most comprehensive study to date of parameters other than in-vehicle time and includes valuations of walk, wait, headway, congested, free flow, late, departure time shift and search time. Exploratory analysis of the data set provides interesting insights into methodological trends in travel demand modelling.For each valuation, over thirty quantitative and categorical variables were recorded and then included in a multivariate regression model to explain variations in the value of time. A large number of statistically significant effects were obtained from this meta-analysis, some of which are in marked contrast with, or not present in, our previous work. One finding that stands out is that the estimated elasticity of the value of time with respect to GDP per capita is 0.9 and highly significant, a much closer correspondence to the widely used convention of a unit income elasticity over time than we have previously obtained. The ratio between walk and wait time and in-vehicle time was found to be substantially lower than the commonly used value of two. We also found large and significant differences between the results from studies based on different types of Stated Preference survey presentation. Other important effects include variations by mode used, mode valued, travel purpose, attribute type and distance. It is envisaged that the results are of direct relevance in the British context, as inputs to appraisal or for benchmarking, whilst the methodological implications are of broader interest and the results, in terms of time equivalents and variations in values of time, can be transferred to other contexts.     

The congestion multiplier: Variations in motorists’ valuations of travel time with traffic conditions

The value of travel time savings in part depends upon the disutility of the travel time that is saved and partly on the use to which the time saved is put. It has long been recognised that the disutility of the time spent travelling also depends upon a wide range of factors such as the journey length or the effort, comfort and safety associated with travelling.Hence we might expect the value of motorists’ travel time to vary with the traffic conditions as represented by the degree of congestion, in part to reflect the more difficult driving environment when there are more vehicles, but also a higher sense of frustration, similar to that associated with waiting time and contributing to its premium valuation.In this context, and despite the predominance of car travel in developed countries, the empirical evidence specifically relating to car values of travel time tends to fail to distinguish between different types of time according to the degree of congestion. Thus we are often left unclear as to precisely what type of time has been valued. Moreover, when a distinction is made, it tends to be into a simple dichotomy of congested and uncongested traffic.This paper provides new evidence on the variation in the valuation of motorists’ travel time savings across a finer gradation of types of time than has been hitherto attempted. This is obtained from the same Stated Choice exercise conducted in the United Kingdom and the United States. The paper also provides an extensive account of previous research into how congestion impacts on motorists’ values of time.     

Traffic congestion pricing methodologies and technologies

This paper reviews the methods and technologies for congestion pricing of roads. Congestion tolls can be implemented at scales ranging from individual lanes on single links to national road networks. Tolls can be differentiated by time of day, road type and vehicle characteristics, and even set in real time according to current traffic conditions. Conventional toll booths have largely given way to electronic toll collection technologies. The main technology categories are roadside-only systems employing digital photography, tag & beacon systems that use short-range microwave technology, and in-vehicle-only systems based on either satellite or cellular network communications. The best technology choice depends on the application. The rate at which congestion pricing is implemented, and its ultimate scope, will depend on what technology is used and on what other functions and services it can perform.     

Will autonomous vehicles change auto commuters’ value of travel time?

This paper examines the potential impact of autonomous vehicles on commuters’ value of travel time (VOTT). In particular, we focus on the effect on auto commuters in small and medium-sized metropolitan areas, concerning the spatial variability across urban areas, suburbs, and rural areas. We design a stated choice experiment to elicit potential changes in 1,881 auto commuters’ valuation of travel time in autonomous vehicles and apply a mixed logit model to quantify the changes in the value of travel time if taking autonomous vehicles. The results of this study suggest that the effect of autonomous vehicles on the VOTT is spatially differentiated. We find that riding in a private autonomous vehicle reduces the commuting VOTT of suburban, urban, and rural drivers by 32%, 24%, and 18%, respectively, compared to 14%, 13%, and 8% for riding in a shared autonomous vehicle. Finally, we discuss the implications of these lower values of time on transportation and land use planning.     

Introducing congestion pricing on a new toll road

This paper proposes a demonstration project to test the effectiveness of congestion pricing in an urban area. It reviews the general theoretical case for such pricing and summarizes recent international interest in congestion pricing. Next, it sets forth the reasons why demonstration projects are needed, both to add to our knowledge about how effective congestion pricing may prove to be, and to address political and other public-acceptance barriers to implementation of the concept. The paper then defines a specific proposed test site for congestion pricing: a new toll road being planned for Orange County, California. It is proposed that instead of charging flat-rate tolls, the transportation agency could charge peak and off-peak tolls, increasing the level of the peak charge each year over a period of up to 10 years unless or until toll revenues decline below the levels forecast under the flat-rate toll alternative. Measurements of traffic flow and ride-sharing behavior would be made, as well as calculations of emission-reduction effects. The paper concludes with a brief discussion of marketing and political considerations involved in conducting such a demonstration.Abbreviations ARB Air Resources Board - AVI Automatic Vehicle Identification - CDMG Corridor Design Management Group - HOV High-occupancy vehicle - SJHTC San Joaquin Hills Transportation Corridor - TCA Transportation Corridor Agency - VMT Vehicle miles traveled     

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.     

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.     

Travel time variability and airport accessibility

We analyze the cost of access travel time variability for air travelers. Reliable access to airports is important since the cost of missing a flight is likely to be high. First, the determinants of the preferred arrival times at airports are analyzed. Second, the willingness to pay (WTP) for reductions in access travel time, early and late arrival time at the airport, and the probability to miss a flight are estimated, using a stated choice experiment. The results indicate that the WTPs are relatively high. Third, a model is developed to calculate the cost of variable travel times for representative air travelers going by car, taking into account travel time cost, scheduling cost and the cost of missing a flight using empirical travel time data. In this model, the value of reliability for air travelers is derived taking “anticipating departure time choice” into account, meaning that travelers determine their departure time from home optimally. Results of the numerical exercise show that the cost of access travel time variability for business travelers are between 0% and 30% of total access travel cost, and for non-business travelers between 0% and 25%. These numbers depend strongly on the time of the day.     

Travel time ratio: the key factor of spatial reach

An important aspect of reach and accessibility is the time people are willing to spend on reaching activity places. In this paper we see the issue of travel time in an alternative way. Instead of looking at travel time separated from time spent on activities, we examine the relation between travel time and stay time. We operationalize this relation with the concept “travel time ratio”. A hypothetical framework underlying these travel time ratios is displayed. We show that for similar types of activity places the value of travel time ratio are in accordance with each other. We find large differences between trips for mandatory activities and trips for discretionary activities. The results indicate the stability of the travel time ratios. Finally, some implications for future research and policy will be mentioned. This revised version was published online in June 2006 with corrections to the Cover Date.     

Measuring community reaction to urban transportation impacts using Von Neumann‐Morgenstern utility theory

This paper attempts to measure the impacts of urban transportation system improvements or changes on the community. The community's perceptions of the impacts are represented by its utilities (or disutilities) over various ranges of values of the multiple attributes representing these impacts. The utility technique used in the evaluation is based upon von Neumann‐Morgenstern (vN‐M, 1947) Utility Theory, and is applied using Raiffa's (1970) Fractile Method.

The paper specifically applies the technique to model the perceptions of five subgroups within a community to the impact of a new light rail transit system that is being incorporated in the transportation system of the City of Calgary.

Results of the modeling indicate explicitly how the community changes its perception over ranges of values of the attributes evaluated. Biases of various subgroups within the community over these attributes are also shown. Statistical tests indicate that aggregated utility perceptions can represent the utility perceptions of the individual subgroups quite reasonably.