Two decades of cost benefit analysis for passenger transport have brought important methodological progress. In particular, the monetary valuation of time, human life and comfort have been improved. The basis of these money valuations is the revealed preference of the consumers. Time is valued from demand functions, explaining modal choice by both time difference and cost difference. The value of time is obtained as a ratio of coefficients in this function. Many applications have been made, in different countries, leading to a variety of numerical results. If the arithmetic mean of these estimates is computed, it can be concluded that the average commuter values time savings at 40% of the wage rate. The value of human life can be estimated from risk premiums for hazardous jobs. Recent research, specifying a decreasing marginal risk premium, indicates much higher values than those advocated ten years ago. It might even be argued that the loss of one human life in a traffic accident costs some ten million Dutch guilders. Comfort is valued by means of methods similar to those used in the valuation of time and life. We estimate a properly specified demand function or explain the price by comfort indices.

  • Corporate Authors:

    Netherlands Institute of Transport

    Polakweg 13
    2288 GG Rijswijk,   Netherlands 
  • Authors:
    • Blauwens, G
  • Publication Date: 1985


  • Dutch

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Filing Info

  • Accession Number: 00455290
  • Record Type: Publication
  • Source Agency: Institute for Road Safety Research, SWOV
  • Files: ITRD, TRIS
  • Created Date: Jul 31 1986 12:00AM