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Value of Time for Commercial Vehicle Operators

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  • Brian Smalkoski
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

Abstract

The spring load restriction policy of Minnesota has been in effect for over 50 years with little consideration given to the cost that it imposes on the freight industry. A cost-benefit study was recently commissioned to examine the policy. The cost-benefit analysis required a precise estimate of the value of time for commercial vehicle operators in Minnesota. An estimate was not available from previous studies, or from previous data. The necessary revealed preference (RP) information does not exist, and relevance of previous studies was questioned based on the differences in geographic location and the age of data used to construct the estimates. A sample was constructed from several trucking industry sources to conduct a survey. Interviews were conducted using an adaptive stated preference (ASP) survey to derive an estimate to the nearest dollar. A tobit model was fit to the data from the interviews to derive the estimate for value of time. A mean of $49.42 was found, with a 95 percent confidence interval from $40.45 to $58.39. Variation in the distribution of values is largely undetermined, with the exception of fleet operation, whether it is a for-hire truck fleet, or a private truck fleet.

Suggested Citation

  • Brian Smalkoski & David Levinson, 2005. "Value of Time for Commercial Vehicle Operators," Working Papers 200501, University of Minnesota: Nexus Research Group.
  • Handle: RePEc:nex:wpaper:truckvalueoftime
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    File URL: http://hdl.handle.net/11299/179925
    File Function: First version, 2007
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    References listed on IDEAS

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    Cited by:

    1. Smalkoski, Brian & Li, Ning & Levinson, David, 2006. "Economic Effects of Lifting the Spring Load Restriction Policy in Minnesota," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 45(2).
    2. Vivek Sujan & Perry T. Jones & Adam Siekmann, 2022. "Characterizing the Payback and Profitability for Automated Heavy Duty Vehicle Platooning," Sustainability, MDPI, vol. 14(4), pages 1-35, February.
    3. Tilahun, Nebiyou Y. & Levinson, David M. & Krizek, Kevin J., 2007. "Trails, lanes, or traffic: Valuing bicycle facilities with an adaptive stated preference survey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(4), pages 287-301, May.
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    5. Welch, Timothy F. & Mishra, Sabyasachee, 2014. "A framework for determining road pricing revenue use and its welfare effects," Research in Transportation Economics, Elsevier, vol. 44(C), pages 61-70.

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    More about this item

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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