IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v100y2017icp133-143.html
   My bibliography  Save this article

Valuing travel time savings: A case of short-term or long term choices?

Author

Listed:
  • Beck, Matthew J.
  • Hess, Stephane
  • Cabral, Manuel Ojeda
  • Dubernet, Ilka

Abstract

The valuation of travel time is of crucial importance in many transport decisions. Most studies make use of data framed around short-term decisions such as route choice. However, people may have a greater ability to trade time and money in a longer term setting, such as when considering changes in residential or employment locations. We study the value of travel time in both the short and long-term, finding differences in the valuations. Given the importance of these valuations for policy making, our results call for more research into how time-cost trade-offs should be represented with stated preference.

Suggested Citation

  • Beck, Matthew J. & Hess, Stephane & Cabral, Manuel Ojeda & Dubernet, Ilka, 2017. "Valuing travel time savings: A case of short-term or long term choices?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 100(C), pages 133-143.
    • Handle: RePEc:eee:transe:v:100:y:2017:i:c:p:133-143
    DOI: 10.1016/j.tre.2017.02.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554516303830
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2017.02.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Younjun Kim & Catherine L. Kling & Jinhua Zhao, 2015. "Understanding Behavioral Explanations of the WTP-WTA Divergence Through a Neoclassical Lens: Implications for Environmental Policy," Annual Review of Resource Economics, Annual Reviews, vol. 7(1), pages 169-187, October.
    3. Jan Rouwendal & Erik Meijer, 2001. "Preferences for Housing, Jobs, and Commuting: A Mixed Logit Analysis," Journal of Regional Science, Wiley Blackwell, vol. 41(3), pages 475-505, August.
    4. Tseng, Yin-Yen & Verhoef, Erik T., 2008. "Value of time by time of day: A stated-preference study," Transportation Research Part B: Methodological, Elsevier, vol. 42(7-8), pages 607-618, August.
    5. John M. Rose & Lorenzo Masiero, 2010. "A comparison of prospect theory in WTP and preference space," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 1006, USI Università della Svizzera italiana.
    6. Swärdh, Jan-Erik & Algers, Staffan, 2009. "Willingness to accept commuting time for yourself and for your spouse: Empirical evidence from Swedish stated preference data," Working Papers 2009:5, Swedish National Road & Transport Research Institute (VTI).
    7. Lam, Terence C. & Small, Kenneth A., 0. "The value of time and reliability: measurement from a value pricing experiment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 231-251, April.
    8. De Borger, Bruno & Fosgerau, Mogens, 2008. "The trade-off between money and travel time: A test of the theory of reference-dependent preferences," Journal of Urban Economics, Elsevier, vol. 64(1), pages 101-115, July.
    9. 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.
    10. Van Ommeren, Jos & Fosgerau, Mogens, 2009. "Workers' marginal costs of commuting," Journal of Urban Economics, Elsevier, vol. 65(1), pages 38-47, January.
    11. repec:cdl:uctcwp:qt0rm449sx is not listed on IDEAS
    12. David A. Hensher & William H. Greene, 2011. "Valuation of Travel Time Savings in WTP and Preference Space in the Presence of Taste and Scale Heterogeneity," Journal of Transport Economics and Policy, University of Bath, vol. 45(3), pages 505-525, September.
    13. Kouwenhoven, Marco & de Jong, Gerard C. & Koster, Paul & van den Berg, Vincent A.C. & Verhoef, Erik T. & Bates, John & Warffemius, Pim M.J., 2014. "New values of time and reliability in passenger transport in The Netherlands," Research in Transportation Economics, Elsevier, vol. 47(C), pages 37-49.
    14. Axhausen, Kay W. & Hess, Stephane & König, Arnd & Abay, Georg & Bates, John J. & Bierlaire, Michel, 2008. "Income and distance elasticities of values of travel time savings: New Swiss results," Transport Policy, Elsevier, vol. 15(3), pages 173-185, May.
    15. Bateman, Ian J. & Day, Brett H. & Jones, Andrew P. & Jude, Simon, 2009. "Reducing gain-loss asymmetry: A virtual reality choice experiment valuing land use change," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 106-118, July.
    16. Devarasetty, Prem Chand & Burris, Mark & Douglass Shaw, W., 2012. "The value of travel time and reliability-evidence from a stated preference survey and actual usage," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(8), pages 1227-1240.
    17. 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.
    18. Hess, Stephane & Rose, John M. & Hensher, David A., 2008. "Asymmetric preference formation in willingness to pay estimates in discrete choice models," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 847-863, September.
    19. Patrick Schirmer & Michael van Eggermond & Kay Axhausen, 2014. "The role of location in residential location choice models: a review of literature," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 7(2), pages 3-21.
    20. Stefanie Peer & Erik Verhoef & Jasper Knockaert & Paul Koster & Yin‐Yen Tseng, 2015. "Long‐Run Versus Short‐Run Perspectives On Consumer Scheduling: Evidence From A Revealed‐Preference Experiment Among Peak‐Hour Road Commuters," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56, pages 303-323, February.
    21. repec:cdl:uctcwp:qt4nq9r1c9 is not listed on IDEAS
    22. Wiktor L. Adamowicz & Vinay Bhardwaj & Bruce Macnab, 1993. "Experiments on the Difference between Willingness to Pay and Willingness to Accept," Land Economics, University of Wisconsin Press, vol. 69(4), pages 416-427.
    23. Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, vol. 81(3), pages 635-647, June.
    24. 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.
    25. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    26. Asensio, Javier & Matas, Anna, 2008. "Commuters' valuation of travel time variability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(6), pages 1074-1085, November.
    27. Tse, Chung Yi & Chan, Alex W. H., 2003. "Estimating the commuting cost and commuting time property price gradients," Regional Science and Urban Economics, Elsevier, vol. 33(6), pages 745-767, October.
    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. Jose Alberto Lara-Pulido & Adan L. Martinez-Cruz, 2023. "Stated benefits of teleworking in Mexico City: a discrete choice experiment on office workers," Transportation, Springer, vol. 50(5), pages 1743-1807, October.
    2. Ilka Dubernet & Kay W. Axhausen, 2020. "The German value of time and value of reliability study: the survey work," Transportation, Springer, vol. 47(3), pages 1477-1513, June.
    3. Qi, Geqi & Ceder, Avishai (Avi) & Zhang, Zixian & Guan, Wei & Liu, Dongfusheng, 2021. "New method for predicting long-term travel time of commercial vehicles to improve policy-making processes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 145(C), pages 132-152.
    4. Meyer de Freitas, Lucas & Becker, Henrik & Zimmermann, Maëlle & Axhausen, Kay W., 2019. "Modelling intermodal travel in Switzerland: A recursive logit approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 200-213.
    5. Poudel, Niranjan & Singleton, Patrick A., 2024. "Willingness to pay for changes in travel time and work time: A stated choice experiment of US commuters," Research in Transportation Economics, Elsevier, vol. 103(C).
    6. Li, Yanan & Li, Xiang & Zhang, Sicheng, 2021. "Optimal pricing of customized bus services and ride-sharing based on a competitive game model," Omega, Elsevier, vol. 103(C).
    7. Kosíková, Renata & Krčál, Ondřej & Peer, Stefanie, 2024. "The value of time in a repeated and one-off setup," Research in Transportation Economics, Elsevier, vol. 103(C).
    8. Schmid, Basil & Becker, Felix & Axhausen, Kay W. & Widmer, Paul & Stein, Petra, 2023. "A simultaneous model of residential location, mobility tool ownership and mode choice using latent variables," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
    9. Binsuwadan, Jawaher & Wardman, Mark & de Jong, Gerard & Batley, Richard & Wheat, Phill, 2023. "The income elasticity of the value of travel time savings: A meta-analysis," Transport Policy, Elsevier, vol. 136(C), pages 126-136.
    10. Marra, Alessio Daniele & Corman, Francesco, 2020. "Determining an efficient and precise choice set for public transport based on tracking data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 168-186.
    11. Jia Guo & Tao Feng & Harry J. P. Timmermans, 2020. "Modeling co-dependent choice of workplace, residence and commuting mode using an error component mixed logit model," Transportation, Springer, vol. 47(2), pages 911-933, April.
    12. Wang, Kaili & Li, Melvyn & Xu, Junshi & Hatzopoulou, Marianne & Nurul Habib, Khandker, 2025. "Behavioural nudging for greener travel: A discrete choice experiment in the Greater Toronto Area," Energy, Elsevier, vol. 322(C).
    13. 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.

    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. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    2. 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.
    3. 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.
    4. 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.
    5. Krčál, Ondřej & Peer, Stefanie & Staněk, Rostislav & Karlínová, Bára, 2019. "Real consequences matter: Why hypothetical biases in the valuation of time persist even in controlled lab experiments," Economics of Transportation, Elsevier, vol. 20(C).
    6. Stefanie Peer & Erik Verhoef & Jasper Knockaert & Paul Koster & Yin‐Yen Tseng, 2015. "Long‐Run Versus Short‐Run Perspectives On Consumer Scheduling: Evidence From A Revealed‐Preference Experiment Among Peak‐Hour Road Commuters," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(1), pages 303-323, February.
    7. Beaud, Mickael & Blayac, Thierry & Stéphan, Maïté, 2016. "The impact of travel time variability and travelers’ risk attitudes on the values of time and reliability," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 207-224.
    8. Binsuwadan, Jawaher & Wardman, Mark & de Jong, Gerard & Batley, Richard & Wheat, Phill, 2023. "The income elasticity of the value of travel time savings: A meta-analysis," Transport Policy, Elsevier, vol. 136(C), pages 126-136.
    9. Monchambert, Guillaume, 2020. "Why do (or don’t) people carpool for long distance trips? A discrete choice experiment in France," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 911-931.
    10. Ilka Dubernet & Kay W. Axhausen, 2020. "The German value of time and value of reliability study: the survey work," Transportation, Springer, vol. 47(3), pages 1477-1513, June.
    11. Monchambert, Guillaume, 2020. "Why do (or don’t) people carpool for long distance trips? A discrete choice experiment in France," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 911-931.
    12. Sander Cranenburgh & Marco Kouwenhoven, 2021. "An artificial neural network based method to uncover the value-of-travel-time distribution," Transportation, Springer, vol. 48(5), pages 2545-2583, October.
    13. 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.
    14. Kingsley Adjenughwure & Basil Papadopoulos, 2019. "Towards a Fair and More Transparent Rule-Based Valuation of Travel Time Savings," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    15. Nicholas Buchholz & Laura Doval & Jakub Kastl & Filip Matejka & Tobias Salz, 2025. "Personalized Pricing and the Value of Time: Evidence From Auctioned Cab Rides," Econometrica, Econometric Society, vol. 93(3), pages 929-958, May.
    16. Feo-Valero, María & Arencibia, Ana Isabel & Román, Concepción, 2016. "Analyzing discrepancies between willingness to pay and willingness to accept for freight transport attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 151-164.
    17. Tsoleridis, Panagiotis & Choudhury, Charisma F. & Hess, Stephane, 2022. "Deriving transport appraisal values from emerging revealed preference data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 225-245.
    18. Poudel, Niranjan & Singleton, Patrick A., 2024. "Willingness to pay for changes in travel time and work time: A stated choice experiment of US commuters," Research in Transportation Economics, Elsevier, vol. 103(C).
    19. Buchholz, Nicholas & Doval, Laura & Kastl, Jakub & Matejka, Filip & Salz, Tobias, 2020. "The Value of Time: Evidence From Auctioned Cab Rides," CEPR Discussion Papers 14666, C.E.P.R. Discussion Papers.
    20. Ding, Hongxing & Yang, Hai & Xu, Hongli & Li, Ting, 2023. "Status quo-dependent user equilibrium model with adaptive value of time," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 77-90.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:transe:v:100:y:2017:i:c:p:133-143. 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/600244/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.