The Impact of Distance-Based Value of Time on Transport Models and Benefit-Cost Analyses: A Norwegian Case Study

Empirical evidence from value of time studies have shown that the value of time is higher for longer trips as compared to shorter trips i.e., value of time vary by distance travelled. A common practice when implementing value of time in transport models and Benefit-Cost Analyses (BCA) is that one sets a limit for shorter and longer trips and then use different, but distance-independent values of time, for the different trips. In Norway, the current practice in the road sector is that shorter trips are defined as trips less than 70 km, medium long trips as those between 70 and 200 km and, long trips are trips above 200 km. The value of time for commuting trips by car assigned to the different lengths are for instance; NOK 100, 217 and 217 for short, medium and long trips, respectively. While the value of time should differ by trip length, there is no scientific evidence to support the trip length limit as practiced in Norway. Those limits are arbitrary, hence may over/underestimate the BCA and transport model results. In this paper, the authors measure the impact of using distance-based value of time; as opposed to the current practices, on the outturns of regional transport models and BCAs. The authors use two different road projects from Norway as case studies. For both of the case studies, there exist regional transport model runs and BCA results that were conducted using the current limits for trip length and their subsequent values of time. The authors framework of analyses proceeds as follows: (i) the authors derive the distance-based value of time from the previous value of time study for Norway, (ii) the authors re-run the transport model and re-conduct the BCA using the derived distance-based value of time and finally, (iii) the authors compare the results with those that were conducted using the current values. The authors tentative observations are that using distance-based value of time increases the value of time savings and hence, produce higher benefits as compared to current practice. The authors study is still ongoing and the final output will be an elaboration of how large the improvements are, variation by project type and trip purposes. The timeliness of this paper must be brought to attention. Currently, there is an ongoing value of time study for Norway. The findings from these paper will therefore be useful when designing how the new values derived should be used.

• Record URL:
  https://aetransport.org/past-etc-papers/conference-papers-2019
• Supplemental Notes:
  • Abstract used by permission of Association for European Transport.
• Corporate Authors:

  Association for European Transport (AET)

  1 Vernon Mews, Vernon Street, West Kensington
  London W14 0RL,    
• Authors:
  • Vestøl, Olav
  • Odeck, James
  • Tørset, Trude
• Conference:
  • European Transport Conference 2019
  • Location: Dublin , Ireland
  • Date: 2019-10-9 to 2019-10-11
• Publication Date: 2019

Language

• English

Media Info

• Media Type: Digital/other
• Pagination: 25p
• Monograph Title: European Transport Conference 2019

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Case studies; Distance; Empirical methods; Forecasting; Regional transportation; Roads; Time studies; Trip length; Value of time
• Geographic Terms: Norway
• Subject Areas: Highways; Planning and Forecasting;

Filing Info

• Accession Number: 01753744
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 29 2020 11:19AM