IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v42y2008i4p577-590.html
   My bibliography  Save this article

Valuation of travel time and departure time choice in the presence of time-of-day pricing

Author

Listed:
  • Ozbay, Kaan
  • Yanmaz-Tuzel, Ozlem

Abstract

This paper evaluates the efficiency of New Jersey Turnpike (NJTPK) time-of-day pricing program via derivation of value of travel time (VOTT) from an analytical approach. The proposed model extends classical time allocation models while considering departure/arrival time choices and relaxes the constant marginal utility assumption to derive an analytical model for VOTT as well as to investigate the theoretical relationship between VOTT, departure/arrival time choice, income, and travel time. Using the traveler survey data collected to evaluate the NJTPK time-of-day pricing program, VOTT functions are estimated for different departure time choices and for trip purposes. The main contribution of the empirical results presented in this study is that in the presence of time-of-day pricing applications, when the main choice of commuters is departure time rather than alternative routes and/or modes, VOTT is influenced from the departure time, trip purpose, desired arrival time, and deviation from the desired arrival time in addition to the travel time, toll, and income parameters. Mean VOTT values are found to range between $15Â per hour and $20Â h-1, depending on departure time choice and trip purpose. This result indicates relatively high VOTT values, explaining the low level of response to the minor toll differentials introduced by the NJTPK Authority.

Suggested Citation

  • Ozbay, Kaan & Yanmaz-Tuzel, Ozlem, 2008. "Valuation of travel time and departure time choice in the presence of time-of-day pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 577-590, May.
    • Handle: RePEc:eee:transa:v:42:y:2008:i:4:p:577-590
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965-8564(08)00004-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blayac, Thierry & Causse, Anne, 2001. "Value of travel time: a theoretical legitimization of some nonlinear representative utility in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 35(4), pages 391-400, May.
    2. 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.
    3. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-130, January.
    4. Andre de Palma & Moshe Ben-Akiva & Claude Lefevre & Nicolaos Litinas, 1983. "Stochastic Equilibrium Model of Peak Period Traffic Congestion," Transportation Science, INFORMS, vol. 17(4), pages 430-453, November.
    5. 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.
    6. 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.
    7. Cirillo, C. & Axhausen, K.W., 2006. "Evidence on the distribution of values of travel time savings from a six-week diary," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(5), pages 444-457, June.
    8. Bates, John J, 1987. "Measuring Travel Time Values with a Discrete Choice Model: A Note," Economic Journal, Royal Economic Society, vol. 97(386), pages 493-498, June.
    9. Hani Mahmassani & Robert Herman, 1984. "Dynamic User Equilibrium Departure Time and Route Choice on Idealized Traffic Arterials," Transportation Science, INFORMS, vol. 18(4), pages 362-384, November.
    10. Sergio R. Jara-Diaz & Cristián A. Guevara, 2003. "Behind the Subjective Value of Travel Time Savings," Journal of Transport Economics and Policy, University of Bath, vol. 37(1), pages 29-46, January.
    11. Algers, S. & Bergstrom, P. & Dahlberg, M. & Dillen, J.L., 1998. "Mixed Logit Estimation of the Value of Travel Time," Papers 1998:15, Uppsala - Working Paper Series.
    12. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    13. Hess, Stephane & Bierlaire, Michel & Polak, John W., 2005. "Estimation of value of travel-time savings using mixed logit models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(2-3), pages 221-236.
    14. Lars Hultkrantz & Reza Mortazavi, 2001. "Anomalies in the Value of Travel-Time Changes," Journal of Transport Economics and Policy, University of Bath, vol. 35(2), pages 285-299, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jang, Kitae & Chung, Koohong & Yeo, Hwasoo, 2014. "A dynamic pricing strategy for high occupancy toll lanes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 69-80.
    2. Holguín-Veras, José & Aros-Vera, Felipe & Browne, Michael, 2015. "Agent interactions and the response of supply chains to pricing and incentives," Economics of Transportation, Elsevier, vol. 4(3), pages 147-155.
    3. Jou, Rong-Chang & Yeh, Yi-Chun, 2013. "Freeway passenger car drivers' travel choice behaviour in a distance-based toll system," Transport Policy, Elsevier, vol. 27(C), pages 11-19.
    4. Xueyi Guan & Jin Qin & Chenghui Mao & Wenliang Zhou, 2023. "A Literature Review of Railway Pricing Based on Revenue Management," Mathematics, MDPI, vol. 11(4), pages 1-17, February.
    5. Holguín-Veras, José & Allen, Brandon, 2013. "Time of day pricing and its multi-dimensional impacts: A stated preference analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 12-26.
    6. Nurul Habib, Khandker M. & Day, Nicholas & Miller, Eric J., 2009. "An investigation of commuting trip timing and mode choice in the Greater Toronto Area: Application of a joint discrete-continuous model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(7), pages 639-653, August.
    7. Nicanor R. Roxas & Alexis M. Fillone, 2016. "Establishing value of time for the inter-island passenger transport of the Western Visayas region, Philippines," Transportation, Springer, vol. 43(4), pages 661-676, July.
    8. C. Angelo Guevara, 2017. "Mode-valued differences of in-vehicle travel time Savings," Transportation, Springer, vol. 44(5), pages 977-997, September.

    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. Börjesson, Maria & Eliasson, Jonas, 2014. "Experiences from the Swedish Value of Time study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 144-158.
    2. 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.
    3. Jan-Erik Swärdh & Staffan Algers, 2016. "Willingness to accept commuting time within the household: stated preference evidence," Transportation, Springer, vol. 43(2), pages 219-241, March.
    4. Maria Börjesson, 2014. "Inter-temporal variation in the travel time and travel cost parameters of transport models," Transportation, Springer, vol. 41(2), pages 377-396, March.
    5. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    6. Fosgerau, Mogens & Bierlaire, Michel, 2007. "A practical test for the choice of mixing distribution in discrete choice models," Transportation Research Part B: Methodological, Elsevier, vol. 41(7), pages 784-794, August.
    7. Seiji S. C. Steimetz, 2009. "White‐Knuckle Externalities," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 304-316, April.
    8. 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.
    9. Snarr, Hal W. & Axelsen, Dan, 2007. "Accounting for peak shifting in traditional cost-benefit analysis," MPRA Paper 37060, University Library of Munich, Germany.
    10. Hess, Stephane & Bierlaire, Michel & Polak, John W., 2005. "Estimation of value of travel-time savings using mixed logit models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(2-3), pages 221-236.
    11. 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.
    12. Peer, Stefanie & Börjesson, Maria, 2018. "Temporal framing of stated preference experiments: does it affect valuations?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 319-333.
    13. Richard Arnott, 1986. "Information and Time-Of-Use Decisions in Stochastically Congestable Facilities," Discussion Papers 788, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    14. Daziano, Ricardo A. & Achtnicht, Martin, 2014. "Accounting for uncertainty in willingness to pay for environmental benefits," Energy Economics, Elsevier, vol. 44(C), pages 166-177.
    15. Mickaël Beaud & Thierry Blayac & Maïté Stéphan, 2014. "Measurements and properties of the values of time and reliability," Working Papers 14-06, LAMETA, Universtiy of Montpellier, revised Jul 2014.
    16. Pawlak, Jacek & Polak, John W. & Sivakumar, Aruna, 2015. "Towards a microeconomic framework for modelling the joint choice of activity–travel behaviour and ICT use," Transportation Research Part A: Policy and Practice, Elsevier, vol. 76(C), pages 92-112.
    17. Correia, Gonçalo Homem de Almeida & Looff, Erwin & van Cranenburgh, Sander & Snelder, Maaike & van Arem, Bart, 2019. "On the impact of vehicle automation on the value of travel time while performing work and leisure activities in a car: Theoretical insights and results from a stated preference survey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 359-382.
    18. Francisco Javier Amador & Rosa Marina González & Juan de Dios Ortúzar, 2004. "Preference heterogeneity and willingness to pay for travel time," Documentos de trabajo conjunto ULL-ULPGC 2004-12, Facultad de Ciencias Económicas de la ULPGC.
    19. Schmid, Basil & Jokubauskaite, Simona & Aschauer, Florian & Peer, Stefanie & Hössinger, Reinhard & Gerike, Regine & Jara-Diaz, Sergio R. & Axhausen, Kay W., 2019. "A pooled RP/SP mode, route and destination choice model to investigate mode and user-type effects in the value of travel time savings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 262-294.
    20. Francisco Javier Amador Morera & Rosa Marina González Marrero, 2005. "Value of Travel Time Savings for University Students and Preference Heterogeneity," Hacienda Pública Española / Review of Public Economics, IEF, vol. 174(3), pages 25-41, September.

    More about this item

    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:eee:transa:v:42:y:2008:i:4:p:577-590. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    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.