Value of travel time by road type

Abstract

Abstract Travel time is less costly if it is comfortable or can be used productively. One could hence argue that the value of travel time (VTT) of car travellers in economic appraisal should be differentiated by road type, reflecting differences in road quality. We explain the theoretical foundation for such a differentiation, review the relevant literature and show the results of an empirical case study based on actual route choice of highway drivers in Norway. We find little existing literature discussing the link between road type and VTT, but closely related findings suggest that that the impact on VTT could be substantial. Our empirical case study also suggests that the VTT is lower on higher quality road types. Applying this to economic appraisal would imply higher user benefits of road projects that improve road quality.

Keywords

• Value of travel time
• Cost–benefit analysis
• Road type
• Road quality
• Driving comfort
• Revealed preference