THE VALUE OF TRAVEL TIME: NEW ESTIMATES DEVELOPED USING A SPEED-CHOICE MODEL. FINAL REPORT

Based on a telephone survey, this study derived the value of time by adopting a speed choice model which assumes that a rational driver chooses a speed so as to minimize his/her total driving costs. Driving costs include vehicle operating costs, time 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 accident cost directly relates to his/her value of life which was derived in two approaches to this study: the forgone labor earnings and the willingness-to-pay to reduce the 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 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.

• Corporate Authors:

  Texas Transportation Institute

  Texas A&M University System, 1600 E Lamar Boulevard
  Arlington, TX  United States  76011

  Texas State Department of Highways & Public Transportation

  Transportation Planning Division, P.O. Box 5051
  Austin, TX  United States  78763

  Federal Highway Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Chui, M K
  • McFarland, W F
• Publication Date: 1986-5

Media Info

• Pagination: 57 p.

Subject/Index Terms

• TRT Terms: Attitudes; Behavior; Benefit cost analysis; Drivers; Fatalities; Hazards; Motor vehicles; Present value; Reduction (Chemistry); Risk assessment; Savings; Speed; Traffic speed; Travel time
• Uncontrolled Terms: Value
• Old TRIS Terms: Reduction
• Subject Areas: Economics; Highways; Planning and Forecasting; Safety and Human Factors; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00457773
• Record Type: Publication
• Source Agency: Federal Highway Administration
• Report/Paper Numbers: FHWA/TX-86/33+396-2F
• Contract Numbers: Study No. 2-8-84-396
• Files: TRIS, USDOT, STATEDOT
• Created Date: Aug 31 1986 12:00AM