The Value of Travel Time: New Estimates Developed Using a Speed-Choice Model

16 Ab",oc' In benefit-cost ani:llysis, trave l time saving represents a major determinant of the henefits from highway improvements . Current values of time arlopterl by the ~exas Highway Evaluation Mnrlel (HEEM) as we ll as those recommended by the Redbook are ~ai rly outdated. New estimates of the val ue of time for cars and trucks are needed for HEEM. Based on a telephone survey, thi s study derived the value of ti~e hy adopting a speed choice model which assu~es that a rational rlriver chooses a speed so as to minimize his/her total driving costs. Dri ving costs inclUde vehicle operating costs, time costs, accident costs, traffic violat ion costs, and other nonquantifiable costs such as comfort and convenience. Among the driving cost co~ponents, fntal accident cost plays an i~portant role in the determination of the value of time. Individual's fatal accidpnt cost di rectly relates to his/I-Jer value of life which was derived in two approaches in this sturly: the foregone labor earnings and tl)e willingness-to-pay to reduce his/her risk of getting killed. Thp two values of life produce two separate values of ti~e for the indivi dua 1. Different wei ghts were cons i dered and app 1 i ed to arri ve at wei ghted average values of time. After a review of the results, this study recorn~encts the value of time for drivers to he $8.00 per person-hour and for passenger cars to he $10.40 per vehicle-hour, in 1985 dollars. The speed choice model was not used in estimating truck value of time because of insufficient response from truck drivers in the survey. Instead, it was derived hy updating values from previous research. The 1985 value of time for trucks was found to be $19.00 per vehicle-hour.