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.     

Investigating preference heterogeneity in Value of Time (VOT) and Value of Reliability (VOR) estimation for managed lanes

This paper presents an empirical study in investigating user heterogeneity of Value of Time (VOT) and Value of Reliability (VOR). Combined Revealed Preference (RP) and Stated Preference (SP) data were used to understand traveler choice behavior regarding the usage of managed lanes (MLs). The data were obtained from the South Florida Expressway Stated Preference Survey, which focused on automobile drivers who had traveled on the I-75, I-95, or SR 826 corridors in South Florida. Mixed logit modeling was applied and indicated an average value of $13.55 per hour for VOT and $16.13 per hour for VOR. Potential sources of heterogeneity in user sensitivities to time, reliability, and cost were identified and quantified by adding interaction effects of the variables in the mixed logit model. The findings indicated that various socioeconomic demographic characteristics and trip attributes contributed to the variations in VOT and VOR at different magnitudes. The results of this study contribute to a better understanding on what attributes lead to higher or lower VOT and VOR and to what extent. These findings can be incorporated into the demand forecasting process and lead to better estimates and enhanced analytical capabilities in various applications, such as toll feasibility studies, pricing strategy and policy evaluations, and impact analysis.     

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.     

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.     

Value of travel time reliability: A review of current evidence

Travel time reliability is a fundamental factor in travel behavior. It represents the temporal uncertainty experienced by travelers in their movement between any two nodes in a network. The importance of the time reliability depends on the penalties incurred by the travelers. In road networks, travelers consider the existence of a trip travel time uncertainty in different choice situations (departure time, route, mode, and others). In this paper, a systematic review of the current state of research in travel time reliability, and more explicitly in the value of travel time reliability is presented. Moreover, a meta-analysis is performed in order to determine the reasons behind the discrepancy among the reliability estimates.     

Estimation of value of travel time reliability

In mode choice decision, travelers consider not only travel time but also reliability of its modes. In this paper, reliability was expressed in terms of standard deviation and maximum delay that were measured based on triangular distribution. In order to estimate value of time and value of reliability, the Multinomial and Nested Logit models were used. The analysis results revealed that reliability is an important factor affecting mode choice decisions. Elasticity is used to estimate the impacts of the different policies and system improvements for water transportation mode. Among these policies, decision maker can assess and select the best alternative by doing the benefit and cost analysis based on a new market share, the value of time, and the value of reliability. Finally, a set of promising policies and system improvement of the water transportation were proposed.     

Door-to-door travel times in RP departure time choice models: An approximation method using GPS data

A common way to determine values of travel time and schedule delay is to estimate departure time choice models, using stated preference (SP) or revealed preference (RP) data. The latter are used less frequently, mainly because of the difficulties to collect the data required for the model estimation. One main requirement is knowledge of the (expected) travel times for both chosen and unchosen departure time alternatives. As the availability of such data is limited, most RP-based scheduling models only take into account travel times on trip segments rather than door-to-door travel times, or use very rough measures of door-to-door travel times. We show that ignoring the temporal and spatial variation of travel times, and, in particular, the correlation of travel times across links may lead to biased estimates of the value of time (VOT). To approximate door-to-door travel times for which no complete measurement is possible, we develop a method that relates travel times on links with continuous speed measurements to travel times on links where relatively infrequent GPS-based speed measurements are available. We use geographically weighted regression to estimate the location-specific relation between the speeds on these two types of links, which is then used for travel time prediction at different locations, days, and times of the day. This method is not only useful for the approximation of door-to-door travel times in departure time choice models, but is generally relevant for predicting travel times in situations where continuous speed measurements can be enriched with GPS data.     

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.     

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.     

Performance measure for reliable travel time of emergency vehicles

Travel time is very critical for emergency response and emergency vehicle (EV) operations. Compared to ordinary vehicles (OVs), EVs are permitted to break conventional road rules to reach the destination within shorter time. However, very few previous studies address the travel time performance of EVs. This study obtained nearly 4-year EV travel time data in Northern Virginia (NOVA) region using 76,000 preemption records at signalized intersections. First, the special characteristics of EV travel time are explored in mean, median, standard deviation and also the distribution, which display largely different characteristics from that of OVs in previous studies. Second, a utility-based model is proposed to quantify the travel time performance of EVs. Third, this paper further investigates two important components of the utility model: benchmark travel time and standardized travel time. The mode of the distribution is chosen as benchmark travel time, and its nonlinear decreasing relationship with the link length is revealed. At the same time, the distribution of standardized travel time is fitted with different candidate distributions and Inv. Gaussian distribution is proved to be the most suitable one. Finally, to validate the proposed model, we implement the model in case studies to estimate link and route travel time performance. The results of route comparisons also show that the proposed model can support EV route choice and eventually improve EV service and operations.     

Estimating freeway route travel time distributions with consideration to time‐of‐day,inclement weather,and traffic incidents

This paper develops an efficient probabilistic model for estimating route travel time variability, incorporating factors of time‐of‐day, inclement weather, and traffic incidents. Estimating the route travel time distribution from historical link travel time data is challenging owing to the interactions among upstream and downstream links. Upon creating conditional probability function for each link travel time, we applied Monte Carlo simulation to estimate the total travel time from origin to destination. A numerical example of three alternative routes in the City of Buffalo shows several implications. The study found that weather conditions, except for snow, incur minor impact on off‐peak and weekend travel time, whereas peak travel times suffer great variations under different weather conditions. On top of that, inclement weather exacerbates route travel time reliability, even when mean travel time increases moderately. The computation time of the proposed model is linearly correlated to the number of links in a route. Therefore, this model can be used to obtain all the origin to destination travel time distributions in an urban region. Further, this study also validates the well‐known near‐linear relation between the standard deviation of travel time per unit distance and the corresponding mean value under different weather conditions. Copyright © 2016 John Wiley & Sons, Ltd.     

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.     

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.     

Investigating empirical implications of hysteresis in day-to-day travel time variability

Day-to-day travel time variability plays a significant role in travel time reliability. Nowadays, travelers not only seek to minimize their travel time on average, but also value its variation. The variation in the mean and the variance of travel time (across days, for the same departure time) has not been thoroughly investigated. A temporary decrease in capacity (e.g. congestion caused by an active bottleneck) leads to a quite significant difference in the variance of travel time for congestion onset and offset periods. This phenomenon results in hysteresis loops where the departure time periods in congestion offset exhibit a higher travel time variance than the ones in congestion onset with the same mean travel time. The aim of this paper is to identify empirical implications that yield to the hysteresis phenomenon in day-to-day travel times. First, empirical hysteresis loop observations are provided from two different freeway sites. Second, we investigate the potential link with the hysteresis observed in traffic networks on macroscopic fundamental diagram (MFD). Third, we build a piecewise linear function that models the evolution of travel time within the day. This allows us to decompose the problem into its components, e.g. start time of congestion, peak travel time, etc. These components, along with their probability distribution functions, are employed in a Monte Carlo simulation model to investigate their partial effects on the existence of hysteresis. Correlation among critical variables is the most influential factor in this phenomenon, which should be further investigated regarding traffic flow and traffic equilibrium principles.     

Towards a microeconomic framework for modelling the joint choice of activity–travel behaviour and ICT use

The rapid development of information and communication technologies (ICT) has been argued to affect time use patterns in a variety of ways, with consequent impacts on travel behaviour. While there exists a significant body of empirical studies documenting these effects, theoretical developments have lagged this empirical work and in particular, microeconomic time allocation models have not to date been fully extended to accommodate the implications of an increasingly digitised society. To address this gap, we present a modelling framework, grounded in time allocation theories and the goods–leisure framework, for joint modelling of the choice of mode of activity (physical versus tele-activity), travel mode and route, and ICT bundle. By providing the expression for a conditional indirect utility function, we use hypothetical scenarios to demonstrate how our framework can conceptualise various activity–travel decision situations. In our scenarios we assume a variety of situations such as the implications of severe weather, the introduction of autonomous vehicles, and the interaction between multiple decision makers. Moreover, our approach lays the microeconomic foundations for deriving subjective values of ICT qualities such as broadband speed or connection reliability. Finally, we also demonstrate the means by which our framework could be linked to various data collection protocols (stated preference exercises, diaries of social interactions, laboratory experiments) and modelling approaches (discrete choice modelling, hazard-based duration models).     

Catching the tail: Empirical identification of the distribution of the value of travel time

Recent methodological advances in discrete choice analysis in combination with certain stated choice experiments have allowed researchers to check empirically the identification of the distribution of latent variables such as the value of travel time (VTT). Lack of identification is likely to be common and the consequences are severe. E.g., the Danish value of time study found the 15% right tail of the VTT distribution to be unidentified, making it impossible to estimate the mean VTT without resorting to strong assumptions with equally strong impact on the resulting estimate. This paper analyses data generated from a similar choice experiment undertaken in Sweden during 2007-2008 in which the range of trade-off values between time and money was significantly increased relative to the Danish experiment. The results show that this change allowed empirical identification of effectively the entire VTT distribution. In addition to informing the design of future choice experiments, the results are also of interest as a validity test of the stated choice methodology. Failure in identifying the right tail of the VTT would have made it difficult to maintain that respondents’ behaviour is consistent with utility maximisation in the sense intended by the experimenter.     

An empirical study to determine freight travel time at a major port

Abstract

This paper examines the reliability measures of freight travel time on urban arterials that provide access to an international seaport. The findings indicate that the reliability index calculated by the median of travel time, which is less sensitive to extreme values in a highly skewed distribution, is more appropriate. This paper also examines several statistical distributions of travel time to determine the best fit to the data of freight trips. The results of goodness-of-fit tests indicate that the log-logistic is the best statistical function for freight travel time during the midday off-peak period. However, the lognormal distribution represents a better fit to arterials with heavily congested traffic during peak periods. Additionally, travel time prediction models identify the relationships between travel time, speeds and other factors that affect travel time reliability. The analysis suggests that incident-induced delays and speed fluctuations primarily contributed to the unreliability of freight movement on the urban arterials.     

On the value of highway travel time information systems

After the widespread deployment of Advanced Traveler Information Systems, there exists an increasing concern about their profitability. The costs of such systems are clear, but the quantification of the benefits still generates debate. This paper analyzes the value of highway travel time information systems. This is achieved by modeling the departure time selection and route choice with and without the guidance of an information system. The behavioral model supporting these choices is grounded on the expected utility theory, where drivers try to maximize the expected value of their perceived utility. The value of information is derived from the reduction of the unreliability costs as a consequence of the wiser decisions made with information. This includes the reduction of travel times, scheduling costs and stress. This modeling approach allows assessing the effects of the precision of the information system in the value of the information.Different scenarios are simulated in a generic but realistic context, using empirical data measured on a highway corridor accessing the city of Barcelona, Spain. Results show that travel time information only has a significant value in three situations: (1) when there is an important scheduled activity at the destination (e.g. morning commute trips), (2) in case of total uncertainty about the conditions of the trip (e.g. sporadic trips), and (3) when more than one route is possible. Information systems with very high precision do not produce better results. However, an acceptable level of precision is completely required, as information systems with very poor precision may even be detrimental. The paper also highlights the difference between the user value and the social value of the information. The value of the information may not benefit only the user. For instance, massive dissemination of travel time information contributes to the reduction of day-to-day travel time variance. This favors all drivers, even those without information. In these situations travel time information has the property that its social benefits exceed private benefits (i.e. information has positive externalities). Of course, drivers are only willing to cover costs equal or smaller than their private benefits, which in turn may justify subsidies for information provision.     

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.     

Urban form,travel time,and cost relationships with tour complexity and mode choice

The primary purpose of this study was to investigate how relative associations between travel time, costs, and land use patterns where people live and work impact modal choice and trip chaining patterns in the Central Puget Sound (Seattle) region. By using a tour-based modeling framework and highly detailed land use and travel data, this study attempts to add detail on the specific land use changes necessary to address different types of travel, and to develop a comparative framework by which the relative impact of travel time and urban form changes can be assessed. A discrete choice modeling framework adjusted for demographic factors and assessed the relative effect of travel time, costs, and urban form on mode choice and trip chaining characteristics for the three tour types. The tour based modeling approach increased the ability to understand the relative contribution of urban form, time, and costs in explaining mode choice and tour complexity for home and work related travel. Urban form at residential and employment locations, and travel time and cost were significant predictors of travel choice. Travel time was the strongest predictor of mode choice while urban form the strongest predictor of the number of stops within a tour. Results show that reductions in highway travel time are associated with less transit use and walking. Land use patterns where respondents work predicted mode choice for mid day and journey to work travel.