On the income elasticity of the value of travel time
2012 (English)In: Transportation Research Part A: Policy and Practice, ISSN 0965-8564, Vol. 46, no 2, 368-377 p.Article in journal (Refereed) Published
Transport infrastructure is long-term and in appraisal it is necessary to value travel timesavings for future years. This requires knowing how the value of time (VTT) will develop over time as incomes grow. This paper investigates if the cross-sectional incomeelasticity of the VTT is equal to inter-temporal income elasticity. The study is based ontwo identical stated choice experiments conducted with a 13. year interval. Results indicate that the relationship between income and the VTT in the cross-section has remained unchanged over time. As a consequence, the inter-temporal income elasticityof the VTT can be predicted based on cross-sectional income elasticity. However, theincome elasticity of the VTT is not a constant but increases with income. For this reason, the average income elasticity of the VTT in the cross-sections has increased between the two survey years and can be expected to increase further over time.
Place, publisher, year, edition, pages
Pergamon Press, 2012. Vol. 46, no 2, 368-377 p.
CBA, Cross-section income elasticity, Income elasticity, Inter-temporal income elasticity, Temporal transferability, Value of travel time
Transport Systems and Logistics
IdentifiersURN: urn:nbn:se:kth:diva-71371DOI: 10.1016/j.tra.2011.10.007ISI: 000300137400009ScopusID: 2-s2.0-81155138363OAI: oai:DiVA.org:kth-71371DiVA: diva2:486702
TSC import 215 2012-01-30. QC 201203052012-01-312012-01-312012-03-05Bibliographically approved