Value of Time Saved for Use in Corps Planning Studies: A Review of the Literature and Recommendations
Abstract
The value of time saved is an important component in water resources planning studies. It is used to evaluating benefits of projects that reduce the travel time between origins and destinations. Conversely, it is also used to calculate additional National Economic Development (NED) costs that construction of a project may incur, via increasing travel time through traffic delays. Public use of the value of time in transportation studies dates back to the early part of the twentieth century when a constant value per hour was administratively set for simplicity. Since that period, research attempting to estimate the value of time intensified with the growing use of both the automobile and with economic analysis as a tool in the project decision making process. Many methodologies and corresponding values were derived, both in the U.S. and the U.K., resulting in as many estimates as studies. Some methods derive a constant unit value dependent on the magnitude of time differential involved, the purpose of trip, or income levels. This lack of cohesion in methods and values has caused confusion as to how to evaluate time in travel, what value to assess it at, and in what direction should future research take. Furthermore, the lack of precision in evaluating the value of time 'saved' or 'lost' creates miscalculations in benefits or costs, respectively, which ultimately are used in deciding the worthiness of a proposed project.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1991
- Accession Number
- ADA252907
Entities
People
- David A. Moser
- David J. Hill