Estimating the willingness to pay and value of risk reduction for car occupants in the road environment

In recent years there has been a re-focus on the valuation of a statistical life from the ex post or human capital method to an ex ante willingness to pay (WTP) approach. This is in part a recognition that we may have been undervaluing the cost of fatalities and injuries to society associated with crashes, but also a strong belief in the need to focus on establishing the amount, ex ante, that individuals are willing to pay to reduce the risk of exposure to circumstances that might lead to death or degree of injury on the road network. This study has developed a framework in which to identify the degree of preference heterogeneity in willingness to pay by individuals who are drivers or passengers in cars to avoid being killed or injured. A stated choice experiment approach is developed. The empirical setting is a choice of route for a particular trip that a sample of individuals periodically undertakes in Australia. The particular trip is described in enough detail to provide the respondent with a familiar market environment, providing all the relevant background information required for making a decision. Mixed logit models are estimated to obtain the marginal (dis)utilities associated with each influence on the choice amongst the attribute packages offered in the stated choice scenarios. These estimates are used to obtain the WTP distributions for fatality and injury avoidance, which are then aggregated to obtain estimates of the value of risk reduction (VRR), of which the fatality class is also known as the value of a statistical life (VSL).     

Workshop report - Public policy and transport

This workshop considered the wider public policy goals of a range of transport interventions. Particular attention was paid to assessing the role of integration of the different components of the transport system and of the integration of transport with other economic sectors. This assessment was informed by Ray Pawson’s realist evaluation approach, with its emphasis on the inter-relationships between context, process and outcome. The context was provided by case studies covering small urban areas, large urban areas and inter-urban corridors. The three key processes identified related to a regulated system with public ownership and control, a deregulated system with private sector ownership (‘competition in the market’) and a system in which there was public planning of the transport system but private provision (‘competition for the market’). Outcomes can be assessed using cost-benefit analysis tools to determine impacts on economic welfare or more qualitative approaches can be used to determine the extent to which accessibility or sustainability goals have been achieved. The evidence provided suggests that wider public policy goals are more important for urban than for inter-urban transport and it thus in urban areas where integration should be pursued with most vigour. The most relevant process for achieving this would seem to be variants of the competition for the market model. Some policy recommendations are made and implications for further research and for future conferences assessed.     

Investigating links between transport disadvantage, social exclusion and well-being in Melbourne - Updated results

This paper updates results of an international study aimed at quantifying the links between transport disadvantage (TD), social exclusion (SE) and well-being (WB) in Melbourne, Australia. The study extends knowledge associated with SE and transport by quantify social and behavioural implications of lack of public and private transport and the nature of the social WB benefits associated with improving services.Study aims and methodology are outlined. Recent findings covered relate to car ownership on the urban fringe, patterns of transport disadvantage, the analysis of time poverty related to transport disadvantage, measuring the economic value of additional mobility and use of a Structural Equation Model (SEM) to relate WB and SE to TD and a series of explanatory factors.Overall results suggest that those without a car on the urban fringe adjust well with their circumstances by living close to activity centres. They demonstrate sustainable choices, trading off budgets and home location to balance mobility and accessibility. Poorer households with high car ownership value mobility and cheaper more remote fringe dwellings but demonstrate numerous strategies to reduce high car costs which are acknowledged as a significant burden. Analysis identifies 4 key types of transport disadvantage including a ‘vulnerable/impaired’ group which should be of much greater concern for targeted policy than others due to poor scoring on SE and WB scales. The economic value of new mobility is also explored with results suggesting $AUD 20 per average new trip which is four times larger than conventional values for generated travel.Analysis has also suggested that transport disadvantage can relate to socially advantaged as well as socially disadvantaged groups through time poverty. This was found to be an important mitigating factor when relating TD to WB. A statistically reliable structural equation model is developed suggesting the SE-WB link is strong (−.87) with a modest link between TD-SE (.27).Areas for future research in the project are also summarised.     

A simulation of the simple Mohring model to predict patronage and value of resources consumed for enhanced bus services

Choosing between the competing approaches to providing enhanced bus services requires the ability to predict the effects on patronage and overall benefits to society in terms of Value of Resources Consumed (VRC) of any proposed change. One common approach uses the Mohring model of 1972 and its successors to optimise one or more aspects of the supply of transit services given various level of demand. This paper simulates the operation of a simple circular bus route using the equations of a basic Mohring type model and a Decision Support System (DSS) to endogenise demand under the assumption that there is a fixed demand for travel but commuters can choose between the bus and private vehicle. The selected approach recognises that demand for a particular mode of travel is predicated on the speed of the vehicle in service which is itself determined by the demand for that vehicle (in this model or boarding and alighting time) rather than being determined exogenously. This creates an iterative feedback mechanism whereby changes to the attributes of the bus and car alter mode choice and the speed in service of the bus which, in turn, alters mode choice. The simulation is used to predict changes to patronage and VRC under scenarios regarding changes to the transport network (in terms of fares and running costs, frequency and spacing of bus stops) using parameters from both a Multinomial Logit (MNL) and a Mixed Multinomial Logit (MMNL). The results demonstrate that there are large differences in the size and, in some cases, direction of predicted changes to patronage, VRC and revenue, depending on whether the parameters of the MNL or MMNL model are used.     

Gender differences in activity participation,time-of-day and duration choices: new evidence from Calgary

To date only limited research has quantified differences between female and male activity patterns, and analyses at an individual activity level are scarce. Past research has focused on investigating gender differences in mobility levels based on observed travel patterns, especially those related to commuting. This article reports new evidence based on analyses of a household activity survey data-set collected from a Canadian city – Calgary – in 2001. Results show that contemporary females and males have a very similar activity participation pattern. On the other hand, analyses applied to activity starting times support the view that there are minor gender differences in time-of-day choices. In addition, duration and survival analyses through log-rank and Wilcoxon tests show that women and men tend to spend more or less time on some of the 10 weekend/weekday activities, and thus indicate that they share different domestic and societal responsibilities: males tend to spend longer time for out-of-home activities, such as work, school, social, and out-of-town; whereas females contribute more to domestic work, including shopping, eating, and religious activity. In general, this article contributes new evidence to gender differences in activity participation, time-of-day, and duration choices at the individual activity level. Such differences may influence travelers’ time, mode, and location choices and thus have important implications for the complexity of an activity-based modeling framework. These implications are discussed along with recommendations for incorporating gender differences in an activity-based modeling framework.     

A methodology to estimate the revenue anticipated from State-level alternative financing approaches in the US

A major issue that State Departments of Transportation (DOTs) in the US face relates to financing future transportation investments. Questions of interest to State DOT officials relate to the suitability and revenue potential of alternative financing approaches. This paper presents a methodology to estimate the potential levels of revenue associated with the use of selected combinations of financing approaches and to assess the adequacy of these revenues vis-a-vis various levels of investments being considered by decision-makers. The methodology is designed to accommodate a wide array of inputs such as major policy objectives and initial assumptions that may vary significantly from State to State in order to provide a greater flexibility of implementation. The application of this methodology is demonstrated with an illustrative example for Massachusetts. This paper should be of interest to State DOTs seeking an acceptable combination of financing approaches to support future transportation investments.     

Competition and Ownership in Land Passenger Transport: The Sixth International Conference,Cape Town,South Africa,September 1999 - Part 1

The ability of conventional South African travel analysis practices to analyse adequately the travel needs of the poor is examined. The origins and nature of conventional practices are described, and it is observed that typically their scope has been limited to motorized modes, commutes and peaks. The paper reports on the findings of an activity diary survey administered in Cape Town that extended the conventional scope of analysis. An activity‐based survey method was selected because it typically yields higher rates of trip recall than other methods and is therefore relatively well suited to investigating travel behaviour in its fuller complexity. Selected findings of the survey are presented to demonstrate that travel occurring by non‐motorized modes, for non‐work purposes and during off‐peak periods, is considerable. It is argued that the conventional limitation in analytical scope can create serious misconceptions of the true nature of travel behaviour, particularly of low‐income households. By restricting the focus of analysis to motorized, work and peak period trip‐making, there is a risk of a routine bias being introduced in the way the urban passenger transport problem is understood, and in the nature of the interventions that are implemented as a result.