IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v165y2022icp225-245.html
   My bibliography  Save this article

Deriving transport appraisal values from emerging revealed preference data

Author

Listed:
  • Tsoleridis, Panagiotis
  • Choudhury, Charisma F.
  • Hess, Stephane

Abstract

Transport demand models are widely used to inform policy making and produce forecasts of future demand. A core output derived from demand models is the Value of Travel Time (VTT), which provides insights on the trade-offs that travellers are willing to make in terms of travel time and travel cost. VTT estimates are a critical input to cost-benefit analyses and feasibility assessments of potential projects and thus play a crucial role in transport planning and policy decisions. While much of the early work on VTT made use of revealed preference (RP) data, their use decreased due to growing concerns about reporting errors that may result in omitted observations and measurement errors in the model inputs. As a consequence, VTT measures have, for the last two decades, primarily been estimated using state-preference (SP) surveys. While SP methods can assess the individual trade-offs in a controlled manner, they are prone to behavioural incongruence. More recently, RP data from passively-collected data sources have raised the promise of accounting for some of the limitations of traditional RP surveys due to the minimal (or even no) active input from the respondent. The present study utilises such a dataset that combined a 2-week trip diary captured through smartphone GPS tracking with a household survey containing individual socio-demographic information. A mixed Logit model for mode choice was specified and the estimated parameters were then applied on the National Travel Survey to calculate the VTT estimates. Those estimates were further adjusted based on trip distances to get more representative national VTT values. This process resulted in estimates similar to the official UK guidelines used in transport appraisal that were obtained from SP data, where our results are not affected by concerns about response quality or survey artefacts. The findings hence strengthen the case for shifting towards passively generated RP data sources and are important for transport practitioners.

Suggested Citation

  • Tsoleridis, Panagiotis & Choudhury, Charisma F. & Hess, Stephane, 2022. "Deriving transport appraisal values from emerging revealed preference data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 225-245.
    • Handle: RePEc:eee:transa:v:165:y:2022:i:c:p:225-245
    DOI: 10.1016/j.tra.2022.08.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856422002208
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2022.08.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gaudry, Marc J. I. & Jara-Diaz, Sergio R. & Ortuzar, Juan de Dios, 1989. "Value of time sensitivity to model specification," Transportation Research Part B: Methodological, Elsevier, vol. 23(2), pages 151-158, April.
    2. Richard Batley & John Bates & Michiel Bliemer & Maria Börjesson & Jeremy Bourdon & Manuel Ojeda Cabral & Phani Kumar Chintakayala & Charisma Choudhury & Andrew Daly & Thijs Dekker & Efie Drivyla & Ton, 2019. "New appraisal values of travel time saving and reliability in Great Britain," Transportation, Springer, vol. 46(3), pages 583-621, June.
    3. Arthur (Yan) Huang & David Levinson, 2015. "Axis of travel: Modeling non-work destination choice with GPS data," Working Papers 000113, University of Minnesota: Nexus Research Group.
    4. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    5. Stephane Hess & Andrew Daly & Maria Börjesson, 2020. "A critical appraisal of the use of simple time-money trade-offs for appraisal value of travel time measures," Transportation, Springer, vol. 47(3), pages 1541-1570, June.
    6. Brownstone, David & Small, Kenneth A., 2005. "Valuing time and reliability: assessing the evidence from road pricing demonstrations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(4), pages 279-293, May.
    7. Li, Lianhua & Adamowicz, Wiktor & Swait, Joffre, 2015. "The effect of choice set misspecification on welfare measures in random utility models," Resource and Energy Economics, Elsevier, vol. 42(C), pages 71-92.
    8. De Borger, Bruno & Fosgerau, Mogens, 2008. "The trade-off between money and travel time: A test of the theory of reference-dependent preferences," Journal of Urban Economics, Elsevier, vol. 64(1), pages 101-115, July.
    9. Börjesson, Maria & Eliasson, Jonas, 2014. "Experiences from the Swedish Value of Time study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 144-158.
    10. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    11. Daly, Andrew & Hess, Stephane & de Jong, Gerard, 2012. "Calculating errors for measures derived from choice modelling estimates," Transportation Research Part B: Methodological, Elsevier, vol. 46(2), pages 333-341.
    12. Hess, Stephane & Daly, Andrew & Dekker, Thijs & Cabral, Manuel Ojeda & Batley, Richard, 2017. "A framework for capturing heterogeneity, heteroskedasticity, non-linearity, reference dependence and design artefacts in value of time research," Transportation Research Part B: Methodological, Elsevier, vol. 96(C), pages 126-149.
    13. David Hensher & William Greene, 2010. "Non-attendance and dual processing of common-metric attributes in choice analysis: a latent class specification," Empirical Economics, Springer, vol. 39(2), pages 413-426, October.
    14. Kouwenhoven, Marco & de Jong, Gerard C. & Koster, Paul & van den Berg, Vincent A.C. & Verhoef, Erik T. & Bates, John & Warffemius, Pim M.J., 2014. "New values of time and reliability in passenger transport in The Netherlands," Research in Transportation Economics, Elsevier, vol. 47(C), pages 37-49.
    15. Andrew Daly & Flavia Tsang & Charlene Rohr, 2014. "The Value of Small Time Savings for Non-business Travel," Journal of Transport Economics and Policy, University of Bath, vol. 48(2), pages 205-218, May.
    16. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    17. Fosgerau, Mogens, 2006. "Investigating the distribution of the value of travel time savings," Transportation Research Part B: Methodological, Elsevier, vol. 40(8), pages 688-707, September.
    18. DeSerpa, A C, 1971. "A Theory of the Economics of Time," Economic Journal, Royal Economic Society, vol. 81(324), pages 828-846, December.
    19. Hess, Stephane & Train, Kenneth E. & Polak, John W., 2006. "On the use of a Modified Latin Hypercube Sampling (MLHS) method in the estimation of a Mixed Logit Model for vehicle choice," Transportation Research Part B: Methodological, Elsevier, vol. 40(2), pages 147-163, February.
    20. Huang, Arthur & Levinson, David, 2017. "A model of two-destination choice in trip chains with GPS data," Journal of choice modelling, Elsevier, vol. 24(C), pages 51-62.
    21. Krčál, Ondřej & Peer, Stefanie & Staněk, Rostislav & Karlínová, Bára, 2019. "Real consequences matter: Why hypothetical biases in the valuation of time persist even in controlled lab experiments," Economics of Transportation, Elsevier, vol. 20(C).
    22. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    23. Shires, J.D. & de Jong, G.C., 2009. "An international meta-analysis of values of travel time savings," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 315-325, November.
    24. Thiene, Mara & Swait, Joffre & Scarpa, Riccardo, 2017. "Choice set formation for outdoor destinations: The role of motivations and preference discrimination in site selection for the management of public expenditures on protected areas," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 152-173.
    25. Imane Essadeq & Thibault Janik, 2021. "Use of Mobile Telecommunication Data in Transport Modelling: A French Case Study," International Transport Forum Discussion Papers 2021/04, OECD Publishing.
    26. Huang, Yuqiao & Gao, Linjie & Ni, Anning & Liu, Xiaoning, 2021. "Analysis of travel mode choice and trip chain pattern relationships based on multi-day GPS data: A case study in Shanghai, China," Journal of Transport Geography, Elsevier, vol. 93(C).
    27. Fosgerau, M. & Bierlaire, M., 2009. "Discrete choice models with multiplicative error terms," Transportation Research Part B: Methodological, Elsevier, vol. 43(5), pages 494-505, June.
    28. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part I. Integrative synthesis of empirical evidence and conceptualisation of external validity," Papers 2102.02940, arXiv.org.
    29. Hess, Stephane & Quddus, Mohammed & Rieser-Schüssler, Nadine & Daly, Andrew, 2015. "Developing advanced route choice models for heavy goods vehicles using GPS data," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 29-44.
    30. Hess, Stephane & Hensher, David A. & Daly, Andrew, 2012. "Not bored yet – Revisiting respondent fatigue in stated choice experiments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 626-644.
    31. Chiara Calastri & Romain Crastes dit Sourd & Stephane Hess, 2020. "We want it all: experiences from a survey seeking to capture social network structures, lifetime events and short-term travel and activity planning," Transportation, Springer, vol. 47(1), pages 175-201, February.
    32. Swait, Joffre & Ben-Akiva, Moshe, 1987. "Incorporating random constraints in discrete models of choice set generation," Transportation Research Part B: Methodological, Elsevier, vol. 21(2), pages 91-102, April.
    33. Wardman, Mark & Chintakayala, V. Phani K. & de Jong, Gerard, 2016. "Values of travel time in Europe: Review and meta-analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 93-111.
    34. Martínez, Francisco & Aguila, Felipe & Hurtubia, Ricardo, 2009. "The constrained multinomial logit: A semi-compensatory choice model," Transportation Research Part B: Methodological, Elsevier, vol. 43(3), pages 365-377, March.
    35. Paul Kelly & Patricia Krenn & Sylvia Titze & Peter Stopher & Charlie Foster, 2013. "Quantifying the Difference Between Self-Reported and Global Positioning Systems-Measured Journey Durations: A Systematic Review," Transport Reviews, Taylor & Francis Journals, vol. 33(4), pages 443-459, July.
    36. Lorenzo Varela, Juan Manuel & Börjesson, Maria & Daly, Andrew, 2018. "Public transport: One mode or several?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 137-156.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsoleridis, Panagiotis & Choudhury, Charisma F. & Hess, Stephane, 2023. "Probabilistic choice set formation incorporating activity spaces into the context of mode and destination choice modelling," Journal of Transport Geography, Elsevier, vol. 108(C).
    2. Heike Link & Dennis Gaus & Neil Murray & Maria Fernanda Guajardo Ortega & Flavien Gervois & Frederik von Waldow & Sofia Eigner, 2023. "Combining GPS Tracking and Surveys for a Mode Choice Model: Processing Data from a Quasi-Natural Experiment in Germany," Discussion Papers of DIW Berlin 2047, DIW Berlin, German Institute for Economic Research.
    3. Ruiz, Elkin & Yushimito, Wilfredo F. & Aburto, Luis & de la Cruz, Rolando, 2024. "Predicting passenger satisfaction in public transportation using machine learning models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sander Cranenburgh & Marco Kouwenhoven, 2021. "An artificial neural network based method to uncover the value-of-travel-time distribution," Transportation, Springer, vol. 48(5), pages 2545-2583, October.
    2. Kingsley Adjenughwure & Basil Papadopoulos, 2019. "Towards a Fair and More Transparent Rule-Based Valuation of Travel Time Savings," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    3. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    4. Schmid, Basil & Molloy, Joseph & Peer, Stefanie & Jokubauskaite, Simona & Aschauer, Florian & Hössinger, Reinhard & Gerike, Regine & Jara-Diaz, Sergio R. & Axhausen, Kay W., 2021. "The value of travel time savings and the value of leisure in Zurich: Estimation, decomposition and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 186-215.
    5. Tjiong, Jeff & Dekker, Thijs & Hess, Stephane & Ojeda Cabral, Manuel, 2022. "The selection of income measures in value of travel time models and their implications for the VTT, its cross-sectional income elasticity and transport appraisal," Research in Transportation Economics, Elsevier, vol. 94(C).
    6. Maria Börjesson & Marco Kouwenhoven & Gerard Jong & Andrew Daly, 2023. "Can repeated surveys reveal the variation of the value of travel time over time?," Transportation, Springer, vol. 50(1), pages 245-284, February.
    7. Stephane Hess & Andrew Daly & Maria Börjesson, 2020. "A critical appraisal of the use of simple time-money trade-offs for appraisal value of travel time measures," Transportation, Springer, vol. 47(3), pages 1541-1570, June.
    8. Ilka Dubernet & Kay W. Axhausen, 2020. "The German value of time and value of reliability study: the survey work," Transportation, Springer, vol. 47(3), pages 1477-1513, June.
    9. Lars Hultkrantz & Selen Savsin, 2018. "Is ‘referencing’ a remedy to hypothetical bias in value of time elicitation? Evidence from economic experiments," Transportation, Springer, vol. 45(6), pages 1827-1847, November.
    10. Lu, Hui & Hess, Stephane & Daly, Andrew & Rohr, Charlene & Patruni, Bhanu & Vuk, Goran, 2021. "Using state-of-the-art models in applied work: Travellers willingness to pay for a toll tunnel in Copenhagen," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 37-52.
    11. Habtamu Tilahun Kassahun & Bo Jellesmark Thorsen & Joffre Swait & Jette Bredahl Jacobsen, 2020. "Social Cooperation in the Context of Integrated Private and Common Land Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 105-136, January.
    12. Krčál, Ondřej & Peer, Stefanie & Staněk, Rostislav & Karlínová, Bára, 2019. "Real consequences matter: Why hypothetical biases in the valuation of time persist even in controlled lab experiments," Economics of Transportation, Elsevier, vol. 20(C).
    13. Krčál, Ondřej & Peer, Stefanie & Staněk, Rostislav, 2021. "Can time-inconsistent preferences explain hypothetical biases?," Economics of Transportation, Elsevier, vol. 25(C).
    14. Askill H. Halse & Stefan Flügel & Marco Kouwenhoven & Gerard Jong & Hanne B. Sundfør & Nina Hulleberg & Guri N. Jordbakke & Henrik Lindhjem, 2023. "A minute of your time: The impact of survey recruitment method and interview location on the value of travel time," Transportation, Springer, vol. 50(5), pages 1553-1584, October.
    15. Schmid, Basil & Jokubauskaite, Simona & Aschauer, Florian & Peer, Stefanie & Hössinger, Reinhard & Gerike, Regine & Jara-Diaz, Sergio R. & Axhausen, Kay W., 2019. "A pooled RP/SP mode, route and destination choice model to investigate mode and user-type effects in the value of travel time savings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 262-294.
    16. Hess, Stephane & Daly, Andrew & Dekker, Thijs & Cabral, Manuel Ojeda & Batley, Richard, 2017. "A framework for capturing heterogeneity, heteroskedasticity, non-linearity, reference dependence and design artefacts in value of time research," Transportation Research Part B: Methodological, Elsevier, vol. 96(C), pages 126-149.
    17. Kassahun, Habtamu Tilahun & Swait, Joffre & Jacobsen, Jette Bredahl, 2021. "Distortions in willingness-to-pay for public goods induced by endemic distrust in institutions," Journal of choice modelling, Elsevier, vol. 39(C).
    18. Manuel Ojeda-Cabral & Stephane Hess & Richard Batley, 2018. "Understanding valuation of travel time changes: are preferences different under different stated choice design settings?," Transportation, Springer, vol. 45(1), pages 1-21, January.
    19. Peer, Stefanie & Knockaert, Jasper & Verhoef, Erik T., 2016. "Train commuters’ scheduling preferences: Evidence from a large-scale peak avoidance experiment," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 314-333.
    20. Merkert, Rico & Beck, Matthew, 2017. "Value of travel time savings and willingness to pay for regional aviation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 96(C), pages 29-42.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:165:y:2022:i:c:p:225-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.