The Value of Travel Time: New Estimates Developed Using a Speed-Choice Model
Author(s):
M.K. Chui, W.F. McFarland
Publication Date:
May 1986
Abstract:
In benefit-cost analysis, travel time saving represents a major determinant of the benefits from highway improvements. Current values of time adopted by the Texas Highway Evaluation Model (HEEM) as well as those recommended by the Redhook are fairly outdated. New estimates of the value of time for cars and trucks are needed for HEEM. Based on a telephone survey, this study derived the value of time by adopting a speed choice model which assures that a rational driver chooses a speed so as to minimize his/her total driving costs. Driving costs include vehicle operating costs, tire costs, accident costs, traffic violation costs, and other nonquantifiable costs such as comfort and convenience.|Among the driving cost components, fatal accident cost plays an important role in the determination of the value of time. Individual's fatal accident cost directly relates to his/her value of life which was derived in two approaches in this study: the foregone labor earnings and the willingness-to-pay to reduce his/her risk of getting killed. The two values of life produce two separate values of time for the individual. Different weights were considered and applied to arrive at weighted average values of time. After a review of the results, this study recommends the value of time for drivers to be $8.00 per person-hour and for passenger cars to be $10.40 per vehicle-hour, in 1985 dollars.|The speed choice model was not used in estimating truck value of time because of insufficient response from truck drivers in the survey. Instead, it was derived by updating values from previous research. The 1985 value of time for trucks was found to be $19.00 per vehicle-hour.
Report Number:
396-2F
Electronic Link(s):
Document/Product
http://tti.tamu.edu/documents/396-2F.pdf
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