Value of Time in the Economic Evaluation of Transport Infrastructures: an Application of a Cluster Analysis



Value of Time in the Economic Evaluation of Transport Infrastructures: an Application of a Cluster Analysis

Authors

Elisabetta Venezia, Università Degli Studi Di Bari “Aldo Moro”, Fabio Pizzutilo, Università Degli Studi Di Bari “Aldo Moro”

Description

In this paper we propose correction indexes to capture territorial components and characteristics, through a cluster analysis.

Abstract

Current issues related to the travel time estimation have assumed a crucial role in the economic analysis,
particularly when time is relevant for transport mode decisions and for travel behavior choices during the
ex ante evaluation process. Normally, in national guidelines, travel time value in considered with regard to its dual role for working and leisure activities or, alternatively, for systematic and erratic transport
motivations. With particular regard to the Italian situation, Transport and Infrastructures Ministry’s
guidelines have a very week point due to the absence of territorial context considerations which can
influence the time value. In this paper we propose correction indexes to capture territorial components and characteristics, through a cluster analysis. The proposed approach is based on the Theory Based
Evaluation, for which interventions need to have a clear context reference, in order to consider ex ante the
effects stemming from infrastructural interventions and to supply appropriate answers to those who are
asking for transport changes. By using a cluster analysis, groups of municipalities with different
characteristics can be classified. With the cluster analysis applied to territories we correct the “normal
reading” of areas’ peculiarities by grouping homogenous needs in ten classes, which are very helpful for those who have to intervene, who can easily replicate interventions in similar areas. These correction
factors are then applied to the time value with the aim of having concrete and more coherent values
reflecting territorial characteristics. This methodology can be replicated in other geographical areas and in
other field, apart for transport.

Keywords: travel time variability, transport investments, economic evaluation.

Basic references.
Bates, J.-Polak, J.-Jones, P.-Cook, A. (2001), The valuation of reliability for personal travel, Transportation
Research, Part E, 37 (2-3), 191-229

Duran-Hormazabal, E.-Tirachini, A. (2016), Estimation of travel time variability for cars, buses, metro and
door-to-door public transport trips in Santiago, Chile, Research in Transportation Economics, 59, 26-39

Eliasson, J. (2006), Forecasting travel time variability, in European Transport Conference

Lam, T.C.-Small, K.A. (2001), The value of time and reliability: measurement from a value pricing
experiment, Transportation Research, part E, 37 (2-39, 231-251.

Publisher

Association for European Transport