Measuring the Value of Time in Freight Transportation
This paper presents an alternative approach to measuring the values of transport time for freight transportation, and examines its applicability through empirical analysis. We develop a model of the freight transportation market, in which carriers incur the cost associated with the effort to reduce transport time, and transport time is endogenously determined in the market. We estimate the freight charge function, expressway choice model, and transport time function, using microdata of freight flow in Japan collected by the Ministry of Land, Infrastructure, Transport and Tourism. Based on the estimated freight charge function, we obtain the values of transport time for shippers as an implicit price in the hedonic theory. The estimated values of transport time for shippers are larger than those obtained by the widely adopted method based on the discrete choice model. We also develop a method to evaluate the benefit of time-saving technological change (including infrastructure improvement) based on the hedonic approach. Application to the evaluation of expressway construction suggests that the benefits calculated by our method tend to be larger than those based on the other methods.
|Date of creation:||Jan 2014|
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- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- KONISHI Yoko & Se-il MUN & NISHIYAMA Yoshihiko & Ji Eun SUNG, 2012.
"Determinants of Transport Costs for Inter-regional Trade,"
12016, Research Institute of Economy, Trade and Industry (RIETI).
- Se-il Mun & Yoko Konishi & Yoshihiko Nishiyama & Ji-eun Sung, 2013. "Determinants of Transport Costs for Inter-regional Trade," ERSA conference papers ersa13p361, European Regional Science Association.
- Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
- Jérôme Massiani, 2008. "Can we use hedonic pricing to estimate freight value of time?," EERI Research Paper Series EERI_RP_2008_08, Economics and Econometrics Research Institute (EERI), Brussels.
- Erik Bergkvist & Lars Westin, 2001. "Regional valuation of infrastructure and transport attributes for Swedish road freight," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(4), pages 547-560.
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