Chapter 6

• Travel Time Components

  • waiting time at public transport stops, in-vehicle time, time spent in congested traffic conditions, weighted summations
• Time spent in congested traffic conditions is valued significantly higher (34%) than time spent in free-flow traffic
• Factors Influencing Longer Distances Traveled

  • Novelty-seeking Behavior
  • Economic Opportunities
  • Teleactivities vs. Physical Travel
• Value of Travel Time (VOTT)


  The amount of money consumers or shippers are willing to pay to save a certain amount of travel time
• Autonomous vehicles (AVs) could potentially lower VOTT for travelers
• High-income individuals typically value travel time savings more than low-income individuals
• Marchetti proposes an anthropological explanation, suggesting that human behavior mirrors ani
• Cost-Benefit Analysis


  A systematic process for evaluating the potential benefits and costs of a project, taking into account the monetary value of outcomes like travel time savings
• Travel Time Components

  1. Perception of Time

  2. Value Assessment

  3. Congestion Perception

  4. Weighted Summation
• Studies reveal that individuals value changes in waiting time differently from changes in in-vehicle time
• Value of Time

  1. Basic Economic Idea

  2. Travel Time Components

  3. Value Assessment

  4. Cost-Benefit Analysis
• Marginal Value of Travel Time Savings (MVTTS)


  The change in value that individuals assign to travel time savings
• Cost-Benefit Analysis

  • Direct Travel Time Losses
  • Indirect Travel Time Costs
• Business and commuting trips often have higher VOTT compared to personal trips
• Despite faster transportation options, people tend to travel longer distances
• Consumers allocate a limited amount of their time to travel, which has remained relatively constant on average at a country level over the past decades
• Types of Generated Traffic

  • Diverted Traffic
  • Induced Traffic
• Teleactivities


  • Activities conducted remotely through telecommunications, such as telecommuting, teleconferencing, and online shopping
• Modal Shift Targets

  • The European Commission's goal is to increase the share of high-speed rail in medium to long-distance travel
• Sensitivity of Car Commuting to Travel Time

  • Car commuting is particularly sensitive to changes in travel time
  • Long-term elasticities for car commuting are often higher than -1, indicating significant adjustments in travel behavior
• Marchetti: 'Marchetti proposes an anthropological explanation, suggesting that human behavior mirrors animals' instinct to defend and expand their territory'
• Elasticity


  In economics, elasticity measures the responsiveness of one variable to changes in another variable
• Generated Traffic

  Additional traffic that arises as a result of improvements in transport infrastructure, leading to increased demand for travel due to reduced travel times
• Economists: 'Economists argue that the potential benefits of finding new opportunities in larger search areas drive the preference for traveling longer distances'
• Policymakers


  Aim to reduce traffic congestion and achieve environmental benefits by investing in public transport infrastructure
• Teleactivities like telecommuting and online shopping

  May reduce some trips but often do not significantly reduce overall travel distances due to individuals reallocating saved time to travel to other destinations
• Methodological Influence on Outcomes

  1. Methodological choices can significantly impact study outcomes

  2. It's risky to transfer elasticities established for one region to another without considering differences in transport circumstances
• Policy Implications of Travel Time Sensitivity

  • The sensitivity of travel time changes has important implications for policy planning
  • Investing in new road capacity may lead to generated traffic
• Long-term vs. Short-term Elasticities


  • Long-term elasticities are typically higher than short-term elasticities as people have more options to adjust their behavior over an extended period
• Cost-benefit appraisals of road projects often rely on elasticity estimates
• Cross-Travel Time Elasticities


  1. Cross-elasticities measure the responsiveness of one mode of transportation to changes in the characteristics of another mode

  2. These elasticities help policymakers understand how improvements in one mode affect the usage of competing modes
• Subcomponents of Monetary Costs

  • Depreciation costs
  • Maintenance costs
  • Parking costs
  • Tolls
  • Insurance costs
  • Fuel costs
  • Taxes
  • Fares (for public transport)
• Studies suggest that there is some stability in travel expenditures over time
• Constant Money Budget for Mobility
• Elasticities


  Responsiveness of individuals to changes in monetary costs
• Habitual Behavior


  Travel mode choice can become a habit, making individuals less receptive to information about improvements in alternative modes
• Empirical research indicates that transport consumers are sensitive to both price and cost changes
• Small percentage changes in car usage

  Can translate to significant absolute decreases due to the high market share of cars in the UK
• Fixed Costs


  Expenses that remain constant regardless of the distance traveled
• Fuel price elasticities can vary based on factors such as income levels and fuel prices