The Value of Time and the Value of Reliability in Cross-Alpine and Cross-Pyrenean Freight Transport



The Value of Time and the Value of Reliability in Cross-Alpine and Cross-Pyrenean Freight Transport

Authors

A Nunez, E Morcello, M Noleo, Louis Berger, FR

Description

This paper reviews two main issues in the cross-Alpine and Cross-Pyrenean choice between rail and road freight transport, the value of time and the value of reliability; and provides an original estimation based on the CAFT survey of 2004.

Abstract

The willingness to pay for a certain attribute (time, reliability, comfort, security) is defined as the marginal rate of substitution between this attribute and the money. This willingness to pay is used to monetize benefits in project evaluation and to forecast demand for new projects.

In freight transport, in particular in rail freight transport, the reliability and the potential improvement of this variable are often even more important than time savings. Despite the importance of such variables, a relatively few number of studies (using both stated and revealed preference) are dedicated to the valuation of the value of time and the value of reliability in freight transport.

This paper reviews these two main issues in the cross-Alpine and Cross-Pyrenean choice between rail and road freight transport. On the base of the last revealed preference studies on cross Alpine and cross Pyrenean transport, it discusses the value and the importance of these variables.

Moreover, on the basis of the Cross Alpine Freight Transport survey of 2004, it provides an original estimation of the value of time in this context, using the classic logit model and the mixed logit model. Also, we apply the Bayesian mixed logit whit the results of the state preference studies as priors.

The analysis shows a very high variability of results and questions their impact in terms of socio-economic evaluation. We also discuss the effect of distributed values in the context of new operators and the potential for revenue maximization for rail infrastructure managers, in the context of market liberalization.

Publisher

Association for European Transport