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Valuing Time and Reliability: Assessing the Evidence from Road Pricing Demonstrations

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  • Brownstone, David
  • Small, Kenneth A.

Abstract

This paper reports results from evaluations of two recent road pricing demonstrations in Southern California. These demonstration projects provide particularly useful opportunities for measuring commuters’ values of time and reliability. Unlike most revealed preference studies of value of time, the choice to pay to use the toll facilities in these demonstrations is relatively independent from other travel choices such as whether to use public transit. Unlike most stated preference studies, the scenarios presented in these surveys are real ones that travelers have faced or know about from media coverage. By combining revealed and stated preference data, the studies have obtained enough independent variation in variables to disentangle effects of cost, time, and reliability, while still grounding the results in real behavior. Both sets of studies find that the value of time saved on the morning commute is quite high (between $20 and $40 per hour) when based on revealed behavior, and less than half that amount when based on hypothetical behavior. When satisfactorily identified, reliability is also valued quite highly. There is substantial heterogeneity in these values across the population, but it is difficult to isolate its exact origins.

Suggested Citation

  • Brownstone, David & Small, Kenneth A., 2003. "Valuing Time and Reliability: Assessing the Evidence from Road Pricing Demonstrations," University of California Transportation Center, Working Papers qt95z0p35k, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt95z0p35k
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    References listed on IDEAS

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    1. repec:cdl:uctcwp:qt9fz0z9kq is not listed on IDEAS
    2. Small, Kenneth A. & Yan, Jia, 2001. "The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation," Journal of Urban Economics, Elsevier, vol. 49(2), pages 310-336, March.
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    5. 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.
    6. John Calfee & Clifford Winston & Randolph Stempski, 2001. "Econometric Issues In Estimating Consumer Preferences From Stated Preference Data: A Case Study Of The Value Of Automobile Travel Time," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 699-707, November.
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    9. Bates, John & Polak, John & Jones, Peter & Cook, Andrew, 0. "The valuation of reliability for personal travel," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 191-229, April.
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    Cited by:

    1. Yin-Yen Tseng, 2004. "A meta-analysis of travel time reliability," ERSA conference papers ersa04p415, European Regional Science Association.
    2. Anny B. Wang & W. Y. Szeto, 2020. "Bounding the Inefficiency of the Reliability-Based Continuous Network Design Problem Under Cost Recovery," Networks and Spatial Economics, Springer, vol. 20(2), pages 395-422, June.
    3. Morteza Chalak & Veronique Florec & Atakelty Hailu & Fiona Gibson & David Pannell, "undated". "Integrating non-market values in economic analyses of flood mitigation: a case study of the Brown Hill and Keswick creeks catchment in Adelaide," Working Papers 256513, University of Western Australia, School of Agricultural and Resource Economics.
    4. Button, Kenneth, 2004. "1. The Rationale For Road Pricing: Standard Theory And Latest Advances," Research in Transportation Economics, Elsevier, vol. 9(1), pages 3-25, January.

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