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In transport economics, the value of time … In transport economics, the value of time is the opportunity cost of the time that a traveler spends on their journey. In essence, this makes it the amount that a traveler would be willing to pay in order to save time, or the amount they would accept as compensation for lost time. One of the main justifications for transport improvements is the amount of time that travelers will save. Using a set of values of time, the economic benefits of a transport project can be quantified in order to compare them to the costs (thus forming the basis of cost-benefit analysis). In particular, savings (or, for that matter, increases) in travel time form part of the change in consumer surplus for a transport project. consumer surplus for a transport project.
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https://www.nber.org/papers/w28208 +
, http://www.dft.gov.uk/pgr/economics/rdg/valueoftraveltimesavingsinth3130 +
, http://www.dft.gov.uk/webtag/documents/expert/unit3.5.6.php +
, http://eprints.whiterose.ac.uk/2079/2/Value_of_travel_time_savings_in_the_UK_protected.pdf +
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In transport economics, the value of time … In transport economics, the value of time is the opportunity cost of the time that a traveler spends on their journey. In essence, this makes it the amount that a traveler would be willing to pay in order to save time, or the amount they would accept as compensation for lost time.ould accept as compensation for lost time.
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Value of time
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