Valuation of travel time and departure time choice in the presence of time-of-day pricing

Kaan Ozbay, Ozlem Yanmaz-Tuzel

Research output: Contribution to journalArticlepeer-review

Abstract

This paper evaluates the efficiency of New Jersey Turnpike (NJTPK) time-of-day pricing program via derivation of value of travel time (VOTT) from an analytical approach. The proposed model extends classical time allocation models while considering departure/arrival time choices and relaxes the constant marginal utility assumption to derive an analytical model for VOTT as well as to investigate the theoretical relationship between VOTT, departure/arrival time choice, income, and travel time. Using the traveler survey data collected to evaluate the NJTPK time-of-day pricing program, VOTT functions are estimated for different departure time choices and for trip purposes. The main contribution of the empirical results presented in this study is that in the presence of time-of-day pricing applications, when the main choice of commuters is departure time rather than alternative routes and/or modes, VOTT is influenced from the departure time, trip purpose, desired arrival time, and deviation from the desired arrival time in addition to the travel time, toll, and income parameters. Mean VOTT values are found to range between $15 per hour and $20 h-1, depending on departure time choice and trip purpose. This result indicates relatively high VOTT values, explaining the low level of response to the minor toll differentials introduced by the NJTPK Authority.

Original languageEnglish (US)
Pages (from-to)577-590
Number of pages14
JournalTransportation Research Part A: Policy and Practice
Volume42
Issue number4
DOIs
StatePublished - May 2008

Keywords

  • Departure time choice
  • Time-of-day pricing
  • Value of travel time

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Business, Management and Accounting (miscellaneous)
  • Transportation
  • Aerospace Engineering
  • Management Science and Operations Research

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