USE OF TWO CONCEPTS OF THE VALUE OF TIME

THE MEANING AND THE IMPORTANCE OF THE WILLINGNESS TO PAY CONCEPT OF THE VALUE OF TIME IS EXAMINED. A NEWLY DEVELOPED CONCEPT OF THE ECONOMIC WORTH OF TIME SAVINGS, CALLED THE COST OF TIME, IS DESCRIBED AND THE WILLINGNESS TO PAY AND COST OF TIME CONCEPTS IN MAKING ECONOMIC DECISIONS ON HIGHWAY IMPROVEMENT COSTS ARE COMPARED. THE FACTORS USED IN ECONOMIC ANALYSIS WERE COMBINED INTO 3 PARAMETERS' /1/ THE ANNUAL HIGHWAY COST, WHICH INCLUDES THE EQUIVALENT UNIFORM ANNUAL CAPITAL OR CONSTRUCTION COST AND THE ANNUAL HIGHWAY MAINTENANCE COST, /2/ THE ANNUAL USER COST, WHICH INCLUDES VEHICLE RUNNING COSTS, TIME COSTS FOR COMMERCIAL VEHICLES, AND ACCIDENT COSTS, AND /3/ THE ANNUAL TRAVEL TIME FOR PASSENGER CARS. IT IS DEMONSTRATED THAT THE PROJECTS SELECTED ARE DEPENDENT ON THE VALUE OF TIME CHOSEN, AND THAT, IF THE ACTUAL WILLINGNESS TO PAY VALUE DIFFERS MUCH FROM THE CHOSEN VALUE, THE PROJECTS SELECTED MAY NOT BE THE MOST DESIRABLE. THE COST OF TIME PROCEDURE PRESENTED ALLOWS PROJECTS TO BE SELECTED WITHIN A BUDGET RESTRAINT WITHOUT DEPENDENCE ON AN ESTIMATED WILLINGNESS TO PAY, WHICH MAY BE INACCURATE. THE MOST IMMEDIATELY PRACTICAL USE OF THE COST OF TIME PROCEDURE WOULD BE TO ESTIMATE THE MAXIMUM ALLOWABLE COST OF TIME USING DATA ON THE PAST YEARS PROPOSALS AND BUDGETS. THIS COST OF TIME COULD THEN BE USED AS A VALUE OF TIME TO EVALUATE ALTERNATIVES OF DESIGN OR OF LOCATION AND TO FORMULATE HIGHWAY PROGRAMS.

Media Info

  • Media Type: Print
  • Features: Appendices; Figures; References; Tables;
  • Pagination: pp 1-18
  • Monograph Title: Highway economics
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201100
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Dec 12 1994 12:00AM