Yin-Yen Tseng, Department of Spatial Economics Vrije Universiteit Amsterdam, Amsterdam, The Netherlands, Erik T. Verhoef, Free University Amsterdam, Amsterdam, The Netherlands, Piet Rietveld, Free University, Amsterdam.
Tinbergen Institute, Amsterdam., Amsterdam, The Netherlands
Valuation of time-varying values of time - Discrete choice analysis of stated choice experiment of road pricing (assigned to theme
Traditional valuation of travel time saving assumes the time value is time-invariant, that is, the value of time is constant over the whole journey. In reality, however, a consumer may evaluate each time slot with different values in the trip, if he or she has scheduling preference of allocating activities into certain time periods. The issue of time-varying values of time has been noted in some theoretical works, for example, Small’s trip scheduling model. While much effort is devoted to measuring the different travel time values associated to the work schedule, no practitioners tempt to estimate the time-varying values of time during the period of traveling. This may be probably attributed to the limitation of available data set. In this study, we propose a general framework for estimating the time-varying values of travel time savings, then provide the empirical evidence that we obtain from the stated choice experiment of congestion pricing for Dutch commuters. This data set, which combines the departure time, route, and mode choice, provides us an excellent opportunity to examine the hypothesis of different travel time values across time intervals. Our specification allows us to estimate the values of travel time savings in each time interval directly and the shadow values of leisure and work can also be inferred indirectly. The analysis in this study may shed some light in the implication of applying values of time. Particularly, when the value of time is used as the input of traffic assignment model, or of cost-benefit analysis, it may have different results of welfare analysis in some transportation management policies which affect individual’s trip timing.
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