Advanced Search
MyIDEAS: Login to save this article or follow this journal

The value of time and external benefits in bicycle appraisal

Contents:

Author Info

  • Börjesson, Maria
  • Eliasson, Jonas

Abstract

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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0965856412000079
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

Volume (Year): 46 (2012)
Issue (Month): 4 ()
Pages: 673-683

as in new window
Handle: RePEc:eee:transa:v:46:y:2012:i:4:p:673-683

Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description

Order Information:
Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
Web: https://shop.elsevier.com/order?id=547&ref=547_01_ooc_1&version=01

Related research

Keywords: Value of time; Bicycle; Cost–benefit analysis; Appraisal; Additional benefits; Health effects;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sergio R. Jara-Diaz & Cristián A. Guevara, 2003. "Behind the Subjective Value of Travel Time Savings," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 37(1), pages 29-46, January.
  2. Börjesson, Maria & Fosgerau, Mogens & Algers, Staffan, 2012. "On the income elasticity of the value of travel time," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 368-377.
  3. Evans, Alan W, 1972. "On the Theory of the Valuation and Allocation of Time," Scottish Journal of Political Economy, Scottish Economic Society, vol. 19(1), pages 1-17, February.
  4. O'Donoghue, Ted & Rabin, Matthew, 2006. "Optimal sin taxes," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1825-1849, November.
  5. Jonas Eliasson & Mattias Lundberg, 2011. "Do Cost--Benefit Analyses Influence Transport Investment Decisions? Experiences from the Swedish Transport Investment Plan 2010--21," Transport Reviews, Taylor & Francis Journals, vol. 32(1), pages 29-48, April.
  6. Fosgerau, Mogens, 2006. "Investigating the distribution of the value of travel time savings," Transportation Research Part B: Methodological, Elsevier, vol. 40(8), pages 688-707, September.
  7. Hopkinson, P & Wardman, M, 1996. "Evaluating the demand for new cycle facilities," Transport Policy, Elsevier, vol. 3(4), pages 241-249, October.
  8. Börjesson, Maria & Fosgerau, Mogens & Algers, Staffan, 2012. "Catching the tail: Empirical identification of the distribution of the value of travel time," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 378-391.
  9. Sælensminde, Kjartan, 2004. "Cost-benefit analyses of walking and cycling track networks taking into account insecurity, health effects and external costs of motorized traffic," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(8), pages 593-606, October.
  10. Sergio Jara-Díaz, 2003. "On the goods-activities technical relations in the time allocation theory," Transportation, Springer, vol. 30(3), pages 245-260, August.
  11. Rietveld, Piet & Daniel, Vanessa, 2004. "Determinants of bicycle use: do municipal policies matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(7), pages 531-550, August.
  12. Abrantes, Pedro A.L. & Wardman, Mark R., 2011. "Meta-analysis of UK values of travel time: An update," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 1-17, January.
  13. Ortúzar, Juan de Dios & Iacobelli, Andrés & Valeze, Claudio, 2000. "Estimating demand for a cycle-way network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(5), pages 353-373, June.
  14. Wardman, Mark & Tight, Miles & Page, Matthew, 2007. "Factors influencing the propensity to cycle to work," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(4), pages 339-350, May.
  15. Ted O'Donoghue & Matthew Rabin, 2003. "Studying Optimal Paternalism, Illustrated by a Model of Sin Taxes," American Economic Review, American Economic Association, vol. 93(2), pages 186-191, May.
  16. DeSerpa, A C, 1971. "A Theory of the Economics of Time," Economic Journal, Royal Economic Society, vol. 81(324), pages 828-46, December.
  17. Börjesson, Maria & Eliasson, Jonas, 2012. "Experiences from the Swedish Value of Time study," Working papers in Transport Economics 2012:8, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The value of time and external benefits in bicycle appraisal
    by CostBenefit in Environmental Valuation & Cost-Benefit News on 2012-01-01 15:45:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Björklund, Gunilla & Isacsson, Gunnar, 2013. "Forecasting the impact of infrastructure on Swedish commuters’ cycling behaviour," Working papers in Transport Economics 2013:36, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
  2. Cheng, Yung-Hsiang & Liu, Kuo-Chu, 2012. "Evaluating bicycle-transit users’ perceptions of intermodal inconvenience," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1690-1706.
  3. Björklund, Gunilla & Mortazavi , Reza, 2013. "Influences of infrastructure and attitudes to health on value of travel time savings in bicycle journeys," Working papers in Transport Economics 2013:35, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:46:y:2012:i:4:p:673-683. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.