IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/37060.html
   My bibliography  Save this paper

Accounting for peak shifting in traditional cost-benefit analysis

Author

Listed:
  • Snarr, Hal W.
  • Axelsen, Dan

Abstract

When cost-benefit analysis fails to account for peak-shifting the benefits of road improvement options are miscalculated. Using theory from transportation economics, we derive a simple model that disaggregates the average daily equilibrium into peak, counter-peak, and off-peak equilibria. This paper demonstrates how accounting for peak-shifting improves the performance of cost-benefit analysis.

Suggested Citation

  • Snarr, Hal W. & Axelsen, Dan, 2007. "Accounting for peak shifting in traditional cost-benefit analysis," MPRA Paper 37060, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37060
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/37060/1/MPRA_paper_37060.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brownstone, David & Ghosh, Arindam & Golob, Thomas F. & Kazimi, Camilla & Van Amelsfort, Dirk, 2003. "Drivers' willingness-to-pay to reduce travel time: evidence from the San Diego I-15 congestion pricing project," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(4), pages 373-387, May.
    2. Brownstone, David & Small, Kenneth A., 2005. "Valuing time and reliability: assessing the evidence from road pricing demonstrations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(4), pages 279-293, May.
    3. Calfee, John & Winston, Clifford, 1998. "The value of automobile travel time: implications for congestion policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 83-102, July.
    4. Small, Kenneth A & Winston, Clifford & Yan, Jia, 2002. "Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability: Implications for Road Pricing," University of California Transportation Center, Working Papers qt8zd2r34k, University of California Transportation Center.
    5. Small, Kenneth A., 2001. "The Value of Pricing," University of California Transportation Center, Working Papers qt0rm449sx, University of California Transportation Center.
    6. Jones, Peter & Hervik, Arild, 1992. "Restraining car traffic in European cities: An emerging role for road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 26(2), pages 133-145, March.
    7. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability," Econometrica, Econometric Society, vol. 73(4), pages 1367-1382, July.
    8. Braid, Ralph M., 1989. "Uniform versus peak-load pricing of a bottleneck with elastic demand," Journal of Urban Economics, Elsevier, vol. 26(3), pages 320-327, November.
    9. Anna Matas & José-Luis Raymond, 2002. "The demand elasticity on tolled motorways," Working Papers wp0203, Department of Applied Economics at Universitat Autonoma of Barcelona.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Seiji S. C. Steimetz, 2009. "White‐Knuckle Externalities," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 304-316, April.
    2. Steimetz, Seiji S.C., 2008. "Defensive driving and the external costs of accidents and travel delays," Transportation Research Part B: Methodological, Elsevier, vol. 42(9), pages 703-724, November.
    3. Kenneth E. McConnell, 2015. "Valuing time for Department of Homeland Security projects and policies," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 9, pages 203-224, Edward Elgar Publishing.
    4. Brownstone, David & Small, Kenneth A., 2005. "Valuing time and reliability: assessing the evidence from road pricing demonstrations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(4), pages 279-293, May.
    5. de Palma, André & Kilani, Moez & Lindsey, Robin, 2005. "Congestion pricing on a road network: A study using the dynamic equilibrium simulator METROPOLIS," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 588-611.
    6. Yin-Yen Tseng, 2004. "A meta-analysis of travel time reliability," ERSA conference papers ersa04p415, European Regional Science Association.
    7. Agarwal, Sumit & Diao, Mi & Keppo, Jussi & Sing, Tien Foo, 2020. "Preferences of public transit commuters: Evidence from smart card data in Singapore," Journal of Urban Economics, Elsevier, vol. 120(C).
    8. Steimetz, Seiji S.C. & Brownstone, David, 2005. "Estimating commuters' "value of time" with noisy data: a multiple imputation approach," Transportation Research Part B: Methodological, Elsevier, vol. 39(10), pages 865-889, December.
    9. Peer, Stefanie & Knockaert, Jasper & Koster, Paul & Tseng, Yin-Yen & Verhoef, Erik T., 2013. "Door-to-door travel times in RP departure time choice models: An approximation method using GPS data," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 134-150.
    10. Bhat, Chandra R. & Sardesai, Rupali, 2006. "The impact of stop-making and travel time reliability on commute mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 40(9), pages 709-730, November.
    11. Hossan, Md Sakoat & Asgari, Hamidreza & Jin, Xia, 2016. "Investigating preference heterogeneity in Value of Time (VOT) and Value of Reliability (VOR) estimation for managed lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 638-649.
    12. Li, Zheng & Hensher, David A., 2012. "Congestion charging and car use: A review of stated preference and opinion studies and market monitoring evidence," Transport Policy, Elsevier, vol. 20(C), pages 47-61.
    13. Ian W.H. Parry, 2009. "Pricing Urban Congestion," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 461-484, September.
    14. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    15. Wu, Wen-Xiang & Huang, Hai-Jun, 2014. "Finding anonymous tolls to realize target flow pattern in networks with continuously distributed value of time," Transportation Research Part B: Methodological, Elsevier, vol. 65(C), pages 31-46.
    16. Stephane Hess & Andrew Daly & Maria Börjesson, 2020. "A critical appraisal of the use of simple time-money trade-offs for appraisal value of travel time measures," Transportation, Springer, vol. 47(3), pages 1541-1570, June.
    17. Safirova, Elena & Gillingham, Kenneth & Parry, Ian & Nelson, Peter & Harrington, Winston & Mason, David, 2004. "8. Welfare And Distributional Effects Of Road Pricing Schemes For Metropolitan Washington Dc," Research in Transportation Economics, Elsevier, vol. 9(1), pages 179-206, January.
    18. Zhaoqi Zang & Richard Batley & Xiangdong Xu & David Z. W. Wang, 2022. "On the value of distribution tail in the valuation of travel time variability," Papers 2207.06293, arXiv.org, revised Dec 2023.
    19. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    20. Krekel, Christian & MacKerron, George, 2023. "Back to Edgeworth? Estimating the Value of Time Using Hedonic Experiences," IZA Discussion Papers 16308, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Transportation Demand; Transportation Supply; Congestion; Cost/Benefit Analysis; Planning Policy;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37060. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.