Value Of Time Savings Research Articles

Mobility-impaired people’s preferences for a specialized paratransit service as BRT’s feeder: The role of autonomy, relatedness, and competence

Transportation is a very important element in the well-being of mobility-impaired people. However, people with disabilities often struggle to access transportation services at all, especially if they live in mountain areas. This study is aimed at better understanding the main factors that affect the preferences for a new specialized paratransit service as BRT’s feeder to serve the portion of the trip that mobility-impaired people cannot manage. We hypothesized that in addition to some observable attributes of the transportation services, such as time and travel cost, mobility-impaired people’s preferences for a specialized paratransit service as BRT’s feeder could be better explained by using a hybrid discrete choice model based on the Self-Determination Theory (SDT). We gathered responses through a stated-preference survey (N = 350), in which respondents faced a series of choice situations among three BRT feeder alternatives: bus, cable car and a new specialized service. We also obtained indicator ratings through a basic psychological needs satisfaction scale to identify the latent variables in relation to the SDT. Modeling results supported our hypothesis that the preferences of mobility-impaired people are better explained by considering the three innate psychological needs. We found empirical evidence linking the components of the SDT, i.e. Autonomy, Relatedness, and Competence, with preferences for the specialized transportation service as BRT’s feeder in the study context. The multipliers of values of time savings derived from the model showed that mobility-impaired people place access time four times more important than travel time. We accounted for the heterogeneity in value of travel time savings and found that the greater the autonomy in mobility-impaired people the greater their sensitivity to the specialized transportation service’s fare. We concluded that Autonomy, Relatedness, and Competence play an important role in the preferences of mobility-impaired people. Autonomy is a determining factor in perception of alternative fares. Competence motivates mobility-impaired people to use the specialized paratransit service as BRT’s feeder, while Relatedness motivates mobility-impaired people to use the same transportation alternatives used by others.

White Paper on the Value of Time Savings for Patients and Healthcare Providers of Breast Cancer Therapy: The Fixed-Dose Combination of Pertuzumab and Trastuzumab for Subcutaneous Injection as an Example.

Health technology assessments and value frameworks are becoming increasingly important for clinical decision-making. Most of these frameworks, however, focus on value to payers rather than patients and healthcare providers and may ignore other sources of economic value such as patient and physician time cost, impact on productivity, and direct health system costs. This article focusses on fixed-dose combination of pertuzumab and trastuzumab for subcutaneous injection (PH FDC SC) in the treatment of HER2-positive breast cancer. We review relevant clinical evidence, examine data on time and resource use of the subcutaneous administration of trastuzumab compared with intravenous treatment and how it can be extrapolated to PH FDC SC, and discuss the value PH FDC SC can bring to patients and healthcare providers. We will also provide our own experiences of PH FDC SC from the healthcare (oncologist, healthcare economist, pharmacist) and patient point of view. The data, combined with our personal experiences, suggest that switching from intravenous pertuzumab and trastuzumab to PH FDC SC could reduce non-drug costs for healthcare providers treating patients with HER2-positive breast cancer through time savings and other economic benefits. Furthermore, PH FDC SC could also save patient time given its shorter administration and post-injection observation time versus intravenous infusions, potentially resulting in reduced productivity loss. These benefits could be applied to other subcutaneous formulations, either currently available or in development.

Using GTFS to Calculate Travel Time Savings Potential of Bus Preferential Treatments

Dedicated bus lanes and other transit priority treatments are a cost-effective way to improve transit speed and reliability. However, creating a bus lane can be a contentious process; it requires justification to the public and frequently entails competition for federal grants. In addition, more complex bus networks are likely to have unknown locations where transit priority infrastructure would provide high value to riders. This analysis presents a methodology for estimating the value of bus preferential treatments for all segments of a given bus network. It calculates the passenger-weighted travel time savings potential for each inter-stop segment based on schedule padding. The input data, ridership data, and General Transit Feed Specification (GTFS) trip-stop data are universally accessible to transit agencies. This study examines the 2018 Metropolitan Atlanta Rapid Transit Authority (MARTA) bus network and identifies a portion of route 39 on Buford Highway as an example candidate for a bus lane corridor. The results are used to evaluate the value of time savings to passengers, operating cost savings to the agency, and other benefits that would result from implementing bus lanes on Buford Highway. This study does not extend to estimating the cost of transit priority infrastructure or recommending locations based on traffic flow characteristics. However, it does provide a reproducible methodology to estimate the value of transit priority treatments, and it identifies locations with high value, all using data that are readily available to transit agencies. Conducting this analysis provides a foundation for beginning the planning process for transit priority infrastructure.

The effect of health benefits on the value of travel time savings in active transport

IntroductionThe valuation of travel time savings and the valuation of health effects are crucial in the economic appraisal of infrastructure projects that affect cycling and walking for transport. Current practices treat the two in separate; but if individuals perceive the positive health effects from active transport, then they should also be expected to factor in these benefits in their valuation of time savings. There ought to be a downward-adjusting effect on their valuation of travel time savings. While this is widely acknowledged within transport economics, there is little empirical evidence on how large the effect from health benefits on the value of travel time savings is. MethodWe have applied two types of choice experiments. The first was a travel mode choice, that enabled a quantification of the effect of cyclist's/pedestrian's motivation for additional physical activity on their valuation of travel time savings. In the second choice experiment, cyclists/pedestrians chose between alternatives that differed in “negative” and “positive” side effects of the physical activity, like sweating and burning calories, as well as differing in travel time. ResultsBased on the first choice experiment, we find that cyclists/pedestrians motivated by health benefits have significantly lower valuation of travel time savings. From the second choice experiment, we find that the valuation of travel time savings decreases as the levels of positive side effects of physical activity in the choice set increase. Taken together, we estimate the decreasing health-benefit effect on the value of travel time savings in active transport in the range of 20–65 percent. ConclusionsThe results support the notion that expected health benefits are influencing the decisions to cycle and walk, with a subsequent negative effect on the valuation of travel time savings. Our study offers new evidence on this relationship as well as new methods for quantifying it.

Benefits and Costs of a Community-Led Total Sanitation Intervention in Rural Ethiopia-A Trial-Based ex post Economic Evaluation.

We estimated the costs and benefits of a community-led total sanitation (CLTS) intervention using the empirical results from a cluster-randomized controlled trial in rural Ethiopia. We modelled benefits and costs of the intervention over 10 years, as compared to an existing local government program. Health benefits were estimated as the value of averted mortality due to diarrheal disease and the cost of illness arising from averted diarrheal morbidity. We also estimated the value of time savings from avoided open defecation and use of neighbours’ latrines. Intervention delivery costs were estimated top-down based on financial records, while recurrent costs were estimated bottom-up from trial data. We explored methodological and parameter uncertainty using one-way and probabilistic sensitivity analyses. Avoided mortality accounted for 58% of total benefits, followed by time savings from increased access to household latrines. The base case benefit–cost ratio was 3.7 (95% CI: 1.9–5.4) and the net present value was Int’l $1,193,786 (95% CI: 406,017–1,977,960). The sources of the largest uncertainty in one-way sensitivity analyses were the effect of the CLTS intervention and the assumed lifespan of an improved latrine. Our results suggest that CLTS interventions can yield favourable economic returns, particularly if follow-up after the triggering is implemented intensively and uptake of improved latrines is achieved (as opposed to unimproved).

Avoiding Traffic Congestion Externalities? The Value of Urgency

In Becker (1965) and neoclassical microeconomic theory the value of time is a constant fraction of the hourly wage. When taken to data, however, this value departs from theoretical predictions, and appears to vary with the amount of time saved. By observing drivers on freeways opting to enter toll lanes with high-frequency, time-varying prices that secure a minimum level-of-service, we uncover a new and fundamental aspect of preferences for travel time savings related to urgency. The presence of preferences for urgency, which reflect the fact that individuals often face discrete penalties for being late, allows us to reconcile the pattern observed in the data with neoclassical theory. Using a rich, repeated-transaction data and individual-level hedonic estimation, we show that the value of urgency accounts for 87 percent of total willingness-to-pay for time savings. As a result, ignoring the value of urgency in cost-benefit analysis severely underestimates the true value of time savings that projects deliver, as such omission will typically ignore non-trivial welfare gains to a potentially large number of individuals.

Factors affecting the adoption and use of urban air mobility

Abstract Technological advances have recently led to the development of urban air mobility (UAM), an alternative transportation mode with several concepts including vehicles operated by on-demand fully-automated vertical take-off and landing aircraft (VTOL) for intra-city passenger transportation. However, despite a growing interest in UAM, understanding users’ perceptions to it remains limited. This research aims to identify and quantify the factors affecting the adoption and use of UAM, based on relevant tools from the literature, such as recurring factors in studies on aerial vehicle concepts, ground autonomous vehicles, but also acceptance models, such as the Technology Acceptance Model by Davis et al. (1989). A stated-preference survey was developed to assess the perception of users in terms of adoption time horizon, including options such as the first six years of the service’s implementation, “unsure”, and “never”. The obtained results were evaluated using exploratory factor analyses, and the specification and estimation of suitable discrete choice models, multinomial logit models (MNLs) and ordered logit models (OLMs), with adoption time horizon as dependent variable. Findings revealed the importance of safety and trust, affinity to automation, data concerns, social attitude, and socio-demographics for adoption. Factors, such as the value of time savings, the perception of automation costs, and service reliability, were also found to be highly influential. There was also an indication that skeptical respondents, i.e. answering “unsure”, had a behavior similar to late and non-adopters, i.e. adoption time horizon higher than six years or answering “never”. The summarized results were represented in an extended Technology Acceptance Model for urban air mobility, and provided insights for policymakers and industrial stakeholders.

VTT or VTTS: a note on terminology for value of travel time work

The value of travel time (VTT) can be said to be the most important number in transport economics, and its estimation has been the topic of extensive academic and applied work. Numerous papers use the term “value of travel time savings”, or VTTS. The addition of the word “savings” has not arisen suddenly but goes back to the 1970s, and has also been used in the titles of national studies. The addition of ‘savings’ is in our view incorrect, misleading and unhelpful. Unlike money, time cannot be stored or borrowed—there is no piggy bank for spare minutes. In addition, the modelling approaches used for many of the more advanced VTT studies in fact produce valuations that are ‘bracketed’ between gains and losses in time, and an average between these gains and losses, typically the geometric mean, is then used as the VTT. It is then clear that the value obtained from this averaging cannot be described as the value of time savings (or reductions), as it includes the higher value of losses (i.e. increases) as well. To exemplify the magnitude of our theoretical points, we show how for the 2015 UK VTT study, using the bracketed value for commuters and labelling it as a VTTS implies an overestimation by a factor of more than 2.

Estimation of Value of Time Savings, Reservation and Ancillary Services of Car Parking in Tourist Destinations

Estimation of Value of Time Savings, Reservation and Ancillary Services of Car Parking in Tourist Destinations

New appraisal values of travel time saving and reliability in Great Britain

This paper provides an overview of the study ‘Provision of market research for value of time savings and reliability’ undertaken by the Arup/ITS Leeds/Accent consortium for the UK Department for Transport (DfT). The paper summarises recommendations for revised national average values of in-vehicle travel time savings, reliability and time-related quality (e.g. crowding and congestion), which were developed using willingness-to-pay (WTP) methods, for a range of modes, and covering both business and non-work travel purposes. The paper examines variation in these values by characteristics of the traveller and trip, and offers insights into the uncertainties around the values, especially through the calculation of confidence intervals. With regards to non-work, our recommendations entail an increase of around 50% in values for commute, but a reduction of around 25% for other non-work—relative to previous DfT ‘WebTAG’ guidance. With regards to business, our recommendations are based on WTP, and thus represent a methodological shift away from the cost saving approach (CSA) traditionally used in WebTAG. These WTP-based business values show marked variation by distance; for trips of less than 20 miles, values are around 75% lower than previous WebTAG values; for trips of around 100 miles, WTP-based values are comparable to previous WebTAG; and for longer trips still, WTP-based values exceed those previously in WebTAG.

Encouraging intermodality: A stated preference analysis of freight mode choice in Rio Grande do Sul

Brazil’s freight modal split is mainly focused on road transport. The imbalance between different transport modes suggests a need to promote alternative modalities to strengthen the competitiveness and provide a more sustainable economic development. The goal of this paper is to identify logistics managers’ preferences for freight transport service attributes for the case of Rio Grande do Sul in Brazil, and discuss which transport policies could encourage multimodality and more sustainable uses of available transport infrastructure. In this paper we used the stated preference (SP) technique for collecting data on respondents’ choices among hypothetical options. The experimental design was structured using an Efficient design. Discrete choice models were used to identify the preferences of respondents and discuss some possible sustainable policies that could increase the competitiveness of the region. The model structures studied were: multinomial logit; mixed logit as a special case of random coefficients; mixed logit error components- considering panel effect and mixed logit error components – including possible correlations between attributes of intermodal alternatives. Parameters estimated from the models were used to compute subjective value of time savings, which was Euro/t.h 0.34 (R$/t. h 1.088) for the selected model. The direct and cross elasticity values of the probability of choosing a transport mode for the different attributes studied show that the shippers significantly value the fulfilment of delivery time and cost, suggesting that those attributes are the most important ones in the choice of transport mode in this State of Brazil. Simulation results suggest investments for increasing the reliability of intermodal alternatives are more effective to encourage intermodality than cost reductions. Policies and investments to encourage multimodality should prioritize the increase of intermodal alternatives reliability and combined policies of cost reduction and reliability.

Estimating the Value of Life, Injury, and Travel Time Saved Using a Stated Preference Framework

The incidence of fatality over the period 2010–2014 from automobile accidents in North Cyprus is 2.75 times greater than the average for the EU. With the prospect of North Cyprus entering the EU, many investments will need to be undertaken to improve road safety in order to reach EU benchmarks. The objective of this study is to provide local estimates of the value of a statistical life and injury along with the value of time savings. These are among the parameter values needed for the evaluation of the change in the expected incidence of automotive accidents and time savings brought about by such projects.In this study we conducted a stated choice experiment to identify the preferences and tradeoffs of automobile drivers in North Cyprus for improved travel times, travel costs, and safety. The choice of route was examined using mixed logit models to obtain the marginal utilities associated with each attribute of the routes that consumers choose. These estimates were used to assess the individuals’ willingness to pay (WTP) to avoid fatalities and injuries and to save travel time. We then used the results to obtain community-wide estimates of the value of a statistical life (VSL) saved, the value of injury (VI) prevented, and the value per hour of travel time saved. The estimates for the VSL range from €315,293 to €1,117,856 and the estimates of VI from € 5,603 to € 28,186. These values are consistent, after adjusting for differences in incomes, with the median results of similar studies done for EU countries.

Impact of Road Infrastructure Pricing on Transport Planning

The paper deals with an issue of the impact of road infrastructure pricing on transport planning. The first part describes the history of road infrastructure pricing in the USA and the EU. The paper also describes an applicable methodology of toll rate determination in the EU. Further part of the paper deals with the factors affecting decision-making of carriers while planning a route of transport. Especially, it deals with a value of time savings and savings in fuel costs while deciding among several routes of transport. The proposal of a methodology for toll rate determination, taking into account the value of time savings for a carrier while using the toll road infrastructure, is elaborated in the next part of the paper. The methodology also takes into account savings in fuel costs of carriers.

Value of Time Savings as a Factor in Deciding on Route Choice

The paper deals with the definition of time savings as a factor in deciding on route choice of a carrier whether to use toll road network. The first part of the paper describes a history of road infrastructure charging in the EU Member States and the USA. Next part analyses the factors affecting decision-making process of a carrier when considering which road infrastructure to use – toll or non-tolled roads. The paper also identifies the value of time savings as a significant factor in route choice.

Value of Travel Time :Theoretical and Empirical Method

The value of travel time savings (VTTS) is the monetary value attached to save a determined amount of travel time. VTTS is also the most important benefit category aimed at justifying investments in transport infrastructures by public administrations. Hence VTTS played a significant role in various economic studies, both analytical and empirical (Zamparini & Reggiani, 2007). It is difficult to name a concept more widely used in transportation analysis than the value of travel time. Its theoretical meaning and its empirical measurement are fundamental to travel demand modeling, social cost analysis, pricing decisions, project evaluation, and the evaluation of many public policies.(small,2012) In developing countries the lack of data regarding the economic value of time savings cause that it often be omitted from appraisal or relied upon proportion of market wage rate (the wage rate method) or using values obtained from developed countries. of course the values obtained from developed countries have serious drawbacks because existing research suggest that value of time is highly affected by preference, physical characteristic of geographical area and habit of particular society ,thus different situation require different modeling and attempt to transfer result from one area to another are fraught of danger, on other hand empirical and theoretical research indicates that the value of time can be significantly higher or lower than the current wage rate, depending on many condition .This paper uses a revealed preference approach to estimate the VTTS for work and educational trips by collecting 480 questioners from individuals that trip in morning peak time in Isfahan city in 1392, and use of discrete choice model for modeling individuals' preferences. Estimated results show, the value of travel time in Isfahan city in morning peak time is 350.50 Rials for each minute and 21030 Rials for each hour in this year.

Die ökonomische Bewertung kleiner Reisezeiteinsparungen / The Economic Valuation of Small Travel Time Savings

Summary Travel time savings are usually the most important utility component in transport infrastructure project evaluation. One of the controversial issues in research on the valuation of travel time savings is the assessment of small time savings. This article goes into this matter with specific focus on indifference thresholds in discrete choice models. Our research shows, if such thresholds exist, valuation of time savings should be differentiated according to the size of the time saving. In particular, small time savings should be valued at a lower rate than large ones. Consequences and criticism regarding this procedure are discussed. We find similarities to the currently applied evaluation methodology in the German Federal Infrastructure Plan.

A Review and Advance of High-Occupancy Toll Lanes’ Toll Schemes

This paper reviews the pricing of high-occupancy toll (HOT) lanes and finds that 1) existing dynamic pricing adjusts every 3-15 minutes according to such parameters as speed, density, and/or volume, 2) tolls increase progressively with traffic to ensure free flow HOT lanes, 3) for multi-zone HOT lanes, tolls tend to be determined by the most congested zone, 4) the reaction of motorists to toll adjustments is either unspecified or oversimplified, and 5) a toll boundary is essential to mediate extreme fluctuations. Based on values of time savings and reliability, a novel toll scheme was proposed as a function of speed of general-purpose lanes; tolls in a selected 10-mile HOT corridor varied between $0.77 and $12.64 per use, of which the value of reliability accounted for 24% to 44% while that of time savings accounted for the remainder. The proposed toll scheme can be applied to time-of-day or dynamic HOT pricing.

The value of time and external benefits in bicycle appraisal

We estimate the value of time savings, different cycling environments and additional benefits in cost–benefit analysis of cycling investments. Cyclists’ value of travel time savings turns out to be high, considerably higher than the value of time savings on alternative modes. Cyclists also value other improvements highly, such as separated bicycle lanes. As to additional benefits of cycling improvements in the form of health and reduced car traffic, our results do not support the notion that these will be a significant part in a cost–benefit analysis. Bicyclists seem to take health largely into account when making their travel choices, implying that it would be double-counting to add total health benefits to the analysis once the consumer surplus has been correctly calculated. As to reductions in car traffic, our results indicate that the cross-elasticity between car and cycle is low, and hence benefits from traffic reductions will be small. However, the valuations of improved cycling speeds and comfort are so high that it seems likely that improvements for cyclists are cost-effective compared to many other types of investments, without having to invoke second-order, indirect effects. In other words, our results suggest that bicycle should be viewed as a competitive mode of travel and not primarily as a means to achieve improved health or reduced car traffic.

Current debates on the cost-benefit analysis of transport proyects in Great Britain

Britain was one of the first countries to adopt cost-benefit analysis for use in transport projects, and now has a state of the art approach, which nests the cost-benefit analysis in a multi-criterion framework linked to the objectives of transport policy. But despite this a number of heated debates about the a p p roach used continue. This paper outlines the current approach used and the debates going on. Regarding valuation of benefits, despite decades of relevant research, the value of time savings remains controversial, particularly in the context of small time savings and of savings in working time, where the current approach is based on theoretical considerations rather than empirical evidence on willingness to pay. The other big uncertainty in measuring benefits is in relation to wider economic benefits. For many years the official position on these was that they were unlikely to be significant, but recent research has led to proposals to incorporate them into the standard analysis. The current British approach to decision criteria relies on the calculation of benefit cost ratios, in which the benefits are the net impact on all other than the government budget and the costs are the cost to the public budget. However, there is a strong case for introducing an explicit shadow price of pub lic funds into the appraisal. A further weakness in current British transport project appraisal is the lack of detailed attention to the distribution of costs and benefits. Overall, appraisal is seen too much as a purely technical analysis to obtain a single indicator of value for money rather than a consideration of the robustness of the project to alternative future scenarios. JEL Classification: G31, H40, H54.

Latent class model or mixed logit model? A comparison by transport mode choice data

This article applies two recently stated choice survey datasets of Japan to investigate the difference between the Latent Class Model (LCM) and the Mixed Logit Model (MLM) for transport mode choice. A detailed comparison is carried out, focusing on comparing values of time savings, direct choice elasticities, predicted choice probabilities and prediction success indices. Furthermore, a test on nonnested model is also utilized to help determine which model is superior to another one. The results suggest that the LCM performs better than the MLM in both datasets.