A Methodology to Estimate Value of Time of Commuters – Evidence from Cities between Fort and Moratuwa (Literature Review)

Abstract

Value of time (VOT) measures is valuable in a wide range of public transport policy and planning applications. Public transportation infrastructure projects can be justified through the quantification of the generalized benefits to society, including reduction of harmful emissions, conservation of energy, and recovery of productivity lost in congestion. Quantification of each of these components is a complicated process, which involves estimates of the gains in each category. To develop a single overall figure, these components need to be translated into a single unit, which is usually a monetary currency. Delay and travel time can be converted to dollar amounts through the concept of VOT. But figures of VOT estimated in Sri Lanka are based on income rate method which uses annual level of income and the working hours of the people. This research develops an econometric model for the estimation of VOT specifying trip based characteristics (mode, travel time, and travel cost) along with socioeconomic characteristics, such as profession, education and car ownership. This model is to be applied to short intercity trips between two medium size cities (Fort and Moratuwa) in Sri Lanka. A stated preference internet survey has been designed to a random sample of 300 people. Based on the data, the coefficients of the model are to be estimated for the estimation of VOT measures through three types of models such as ordered logit model, the generalised linear mixed model and binary logit model.