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Accounting for user type and mode effects on the value of travel time savings in project appraisal: Opportunities and challenges

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  • Flügel, Stefan

Abstract

Differences in Value of Travel Time Savings (VTTS) between travel modes can play a decisive role in the ranking of projects that affect the travel time of different travel modes. Conceptually, between-mode differences in VTTS can be decomposed into the user type effect (UE) that accounts for differences in characteristics of user groups (e.g. income differences) and the mode effect (ME) that accounts for differences in travel modes (e.g. the comfort level). Several studies have disentangled and quantified these two effects. However, their potential use for project appraisal has not been thoroughly discussed in the literature.

Suggested Citation

  • Flügel, Stefan, 2014. "Accounting for user type and mode effects on the value of travel time savings in project appraisal: Opportunities and challenges," Research in Transportation Economics, Elsevier, vol. 47(C), pages 50-60.
    • Handle: RePEc:eee:retrec:v:47:y:2014:i:c:p:50-60
    DOI: 10.1016/j.retrec.2014.09.018
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    References listed on IDEAS

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    More about this item

    Keywords

    Value of travel time savings; User type effect; Mode effect; Project appraisal; Distributional weights;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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