Estimating the Benefits of Managed Lanes (UTCM 08-05-04)

Stated preference (SP) studies developed to estimate travelers' value of travel time savings (VTTS) on managed lanes (ML) may underestimate the VTTS. This study investigates survey design strategies and differentiating the VTTS for ordinary and six common urgent situations faced by the travelers in an attempt to improve on VTTS estimation. An internet based survey for Katy Freeway travelers was used to collect data for this study. We used three different survey design strategies to produce surveys. We found that a random attribute level generation strategy, where the VTTS presented in the alternative was adjusted based on the answer to a previous SP question, performs better than other designs with respect to analysis of choice behavior and estimation of VTTS. We analyzed SP choices for travelers facing ordinary and six common urgent travel situations. We found that travelers value their travel time savings much more when facing most of the urgent situations. Due to this significant increase in the VTTS for travelers on urgent trips it is possible that the majority of ML travelers are on urgent trips. This includes travelers from all income levels, as even low income travelers on urgent trips value their time more than many high income travelers on regular trips. Therefore, using average VTTS will greatly underestimate the value of these MLs to travelers. This has significant policy implications since the benefits of MLs (and of most transportation investments) are primarily derived from travel time savings. Underestimating the value of ML travel time savings underestimates the benefits of MLs, reducing the likelihood of funding such facilities. Thus an important travel alternative would not be constructed. This study provides an important first step in proper estimation of these benefits using revised SP survey designs.