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The Costs and Benefits of Home-Based Telecommuting

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  • Shafizadeh, Kevan R.
  • Mokhtarian, Patricia L.
  • Niemeier, Debbie A.
  • Salomon, Ilan

Abstract

This report evaluates the costs and benefits of home-based telecommuting. Combining empirical data from the literature with a Monte Carlo simulation technique, a distribution of cost-benefit ratios is produced from three perspectives: the employer, the telecommuter, and the public sector.... Depending on the underlying assumptions, the results indicate that telecommuter benefit-cost ratios are generally above one if the employer bears the majority of the equipment cost burden. ...Even when parking and office space benefits are included, productivity lies at the heart of the telecommuting cost-benefit analysis from the employer's perspective, and in almost all cases, the employer's case relies on some assumed maintenance or increase in productivity as the primary benefit. It is also shown that the potential for office and parking space benefits are high, although these benefits remain somewhat questionable. ...Based on our analysis, we conclude that the public sector air quality and construction avoidance benefits remain somewhat questionable based on the current knowledge, and difficult to justify.... Keywords: telecommuting, cost-benefit analysis, simulation, telecommunication

Suggested Citation

  • Shafizadeh, Kevan R. & Mokhtarian, Patricia L. & Niemeier, Debbie A. & Salomon, Ilan, 2000. "The Costs and Benefits of Home-Based Telecommuting," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt49c1n7hg, Institute of Transportation Studies, UC Berkeley.
    • Handle: RePEc:cdl:itsrrp:qt49c1n7hg
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    References listed on IDEAS

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    1. Nick Hanley & Clive L. Spash, 1993. "Cost–Benefit Analysis and the Environment," Books, Edward Elgar Publishing, number 205.
    2. Mokhtarian, Patricia L. & Salomon, Ilan, 1997. "Modeling the desire to telecommute: The importance of attitudinal factors in behavioral models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(1), pages 35-50, January.
    3. P L Mokhtarian & I Salomon, 1996. "Modeling the Choice of Telecommuting: 3. Identifying the Choice Set and Estimating Binary Choice Models for Technology-Based Alternatives," Environment and Planning A, , vol. 28(10), pages 1877-1894, October.
    4. P L Mokhtarian & I Salomon, 1994. "Modeling the Choice of Telecommuting: Setting the Context," Environment and Planning A, , vol. 26(5), pages 749-766, May.
    5. Mokhtarian, Patricia L. & Handy, Susan L. & Salomon, Ilan, 1995. "Methodological issues in the estimation of the travel, energy, and air quality impacts of telecommuting," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(4), pages 283-302, July.
    6. Shafizadeh, K. & Niemeier, D. & Mokhtarian, P. & Salomon, I., 1998. "The Costs And Benefits Of Telecommuting: An Evaluation Of Macro-scale Literature," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt1f01c191, Institute of Transportation Studies, UC Berkeley.
    7. Mokhtarian, Patricia L. & Salomon, Ilan & Saxena, Somitra & Sampath, Srikanth & Cheung, Peter & Le, Kate & Bagley, Michael, 1996. "Adoption of Telecommuting in Two California State Agencies," University of California Transportation Center, Working Papers qt2v63b7b8, University of California Transportation Center.
    8. Shoup, Donald C., 1997. "Evaluating the Effects of Parking Cash Out: Eight Case Studies," University of California Transportation Center, Working Papers qt5nc6w2dj, University of California Transportation Center.
    9. Patricia L. Mokhtarian, 1998. "A Synthetic Approach to Estimating the Impacts of Telecommuting on Travel," Urban Studies, Urban Studies Journal Limited, vol. 35(2), pages 215-241, February.
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    Cited by:

    1. Moss, Mitchell L. & Kaufman, Sarah M. & Townsend, Anthony M., 2006. "The relationship of sustainability to telecommunications," Technology in Society, Elsevier, vol. 28(1), pages 235-244.

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