Abstract
Systems of urban transportation are largely shaped through planning practices. In transport economics, the benefits of infrastructure investments consist mainly of travel time savings calculated using monetary values of time. The economic interpretation of the value of travel time has significantly shaped our urban environment and transportation schemes. However, there is often an underlying assumption of transferability between time and money, which arguably does not sufficiently take into account the specific features of time. In this paper, we analyze the various properties of time as an economic resource using findings in behavioral economics and psychology. Due to limitations in the standard model, it is proposed that an alternative model value should be investigated in which time rather than money is the primary carrier of and the basic features of such a model are outlined. An improved understanding the nature of time as a source of utility puts us in a better position to determine what aspects of time matter. Additionally, the analysis can be applied to further develop modeling where value of time plays a significant role; such as new models for the planning of urban transport.
Highlights
Time differs from money and from most commodities with a monetary value in several ways
In light of how influential this practice is in the development of our cities and urban environments, we believe the considerations raised in this paper are warranted
The mismatch between temporal and monetary value should be considered in the construction of models for transport economics and transport policy
Summary
Projects that free up more time for individuals to spend in whichever way they like, such as doing more work, being with family and friends, traveling elsewhere or carrying out other activities, can reasonably be assumed to increase human welfare. This can be considered from the perspective of monetary costs of activities, since “[f]or most activities, the assumption of constant activity cost per unit of activity time does not apply” (Fellner and Seidl 2015) It should be noted, though, that this model assumes that all the values we want to take into account can be located in one or several specific time period(s). The relationship between the activities in themselves needs to be taken into account
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