VALUE OF TRAVEL TIME SAVINGS IN PERSONAL AND COMMERCIAL AUTOMOBILE TRAVEL

Abstract

This paper reviews the broad literature on the value of travel time savings. Specific consideration is given to the economic theoretic foundations and their translation into suitable empirical models; the distinction between behavioural, resource and equity values; and the sources of variability in empirical values. We detail the merits of the stated preference approach when the interest is on the empirical specification of a valuation function in contrast to a single mean estimate of the value of travel time savings. A case study related to the choice between a tolled and a free urban route is presented as a framework within which to illustrate how economic theory and experimental design can be combined to improve the evidence on behavioural values of travel time savings in a number of travel market segments.