VALUE OF TIME FOR COMMERCIAL VEHICLE OPERATORS IN MINNESOTA

Brian Smalkoski and David Levinson

No 208272, 45th Annual Transportation Research Forum, Evanston, Illinois, March 21-23, 2004 from Transportation Research Forum

Abstract: The spring load restriction policy of Minnesota has been in effect for over 50 years with no consideration given to the cost that it imposes on the freight industry. A cost-benefit study was recently commissioned to examine the policy’s necessity. 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% 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. The current state of the art in using stated preference (SP) methods to evaluate the value of time uses a fee structure in exchange for time savings, in most cases a toll. It has been shown that SP methods typically underestimate the true value of time. The use of a fee structure fails to account for those subjects that avoid paying additional fees for a public good that they may feel they pay for in the form of taxes. The fine structure included in this ii analysis accounts for these subjects and provides a greater estimate for value of time compared to previous studies.

Keywords: Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 27
Date: 2004-03
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ndtr04:208272

DOI: 10.22004/ag.econ.208272

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