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Center Identification Number:  77806   

Project Title:  Synthesis of Research on Value of Time and Value of Reliability   

Principal Investigator:

Sisinnio Concas, Senior Research Associate
Phone: 813-974-7760
E-mail: concas@cutr.usf.edu

Institution:                             

Center for Urban Transportation Research
University of South Florida
Fax: 813-974-5168

 External Project Contact:     

Martin Markovich
Florida Department of Transportation
Office of Public Transportation Transit Planning Program
(850) 414-4918 Email:
pl93lmm@dot.state.fl.us

I.  Project Objective/Problem Statement

Highways in the U.S. have been funded largely by gas taxes, both at the national and state levels. This has resulted in a disconnect between roadway operators (state and local transportation agencies) and roadway users. Roadway users cannot discern information about travelers’ preferences based on their willingness to pay. This often results in highway investments that do not meet users’ needs. Road pricing is becoming increasingly relevant as a measure for generating revenue, managing congestion, and improving travel time reliability. As a result of the SAFETEA-LU Value Pricing Pilot Program, Florida transportation agencies are investigating the opportunity to introduce road pricing initiatives. This has resulted in increased level of interest in incorporating High Occupancy Vehicle (HOV), High Occupancy Tolling (HOT) lanes, managed lanes, and value pricing strategies into short and long range plans. For example several local transportation agencies have partnered together to develop the South Florida Managed Lane project which combines HOV lanes for express transit and managed lanes with value pricing to solve current and future congestion problems affecting heavily congested metropolitan areas. Despite the compelling economic argument in favor of roadway pricing as a means to uncover users’ willingness to pay for additional transportation infrastructure, it often lacks political support. Concerns for the effect of congestion pricing of roadways on low income people and lack of education about potential, regardless of income, travel time savings further influence public and political support. The primary barrier to successfully modeling the impacts of tolls on travel demand is the lack of sufficient empirical data on the value of time (VOT) and how it varies by socio-demographic characteristics and trip purpose . Although the value of time has been the subject of decades of substantial research, several areas of research and information sharing could improve the state of the practice in modeling road pricing strategies. One research area that is often overlooked is the empirical evidence that travelers value reliability as an important factor in trip making decisions. Reliability is typically defined as the day-to-day variability in expected travel time due to non-recurrent congestion, such as traffic incidents, weather, construction, etc. Reliability becomes particularly important in value pricing of HOT lane and managed lane applications, where tolls are adjusted based on traffic volumes to maintain a desired level of service. Reliability can be critical for travelers with rigid schedule requirements (day care pickups, workers on time clocks, airline passengers) and is not necessarily correlated with the traveler’s value of time .

II.  Objectives/Tasks

The objective of this proposed research effort is to compile and synthesize current and past research on VOT and the value of reliability of travel. This effort will compile extensive research into an application-oriented document that provides transportation modelers with reasonable ranges for VOT, classified by income level, trip purpose, or other relevant parameters, with practical guidance on other VOT adjustments. The effort will also synthesize the more limited research on value of time reliability to provide practical guidance, based on current knowledge and to identify priority areas for further research. 

Task 1: Review of Theoretical Models

The objective of this task is twofold. First, a review of the literature on models that deal with the theoretical issues of estimating the value of time and reliability of travel time will be conducted. Given the vast body of literature, the effort will concentrate on research conducted within the field of transportation travel demand. Concurrently with the review, this task will catalog the various interpretations and definitions of VOT savings. For example, under different definitions and modeling frameworks, the VOT saving can be measured using the prevailing wage. In other contexts where time is considered as an input (and also a constraint) in conducting daily activities from which travel is generated, the VOT might be interpreted as a cost and not as a saving, with relevant theoretical implications. 

Task 2: Review of Empirical Models and Applications

The objective of this task is to review empirical applications of the VOT and reliability of travel time.. In particular, the review will cover formal empirical tests of theoretical models identified in Task I that provide parameter estimates, and other empirical applications within the field of transport demand modeling. Particular attention will be paid to empirical assessment of VOT in road pricing projects to assess the extent to which income heterogeneity affects VOT estimates. The analysis will extend to cover research endeavors that deal with estimating the VOT and public transportation. As part of this task, a spreadsheet database will be prepared to be used in Task 3.

Task 3: Guidance on How to Use Empirical Estimates

The objective of this task is to summarize the results of Task 1 and Task 2 into a technical documentation to help professionals use the parameters. In addition, the document will provide a reference to sources where such parameters can be obtained. The guidance will provide insight on how best to use these estimates and in what context they can be used.

Task 4: Final Draft and Final Report

The objective of this task is to summarize the efforts of Task 1 through Task 3.  This task will be accomplished by the PI and Co-PI.  

III. Deliverables

Progress Reports

Progress Reports will be submitted on a quarterly basis to the Research Center for processing. The first progress report will become due 90 days after a Notice to Proceed is issued to the consultant by the Department. They may be sent in MS Word format to Sandra Bell, Contracts Administrator at Sandra.Bell@dot.state.fl.us.

Progress reports must include the following information: 1. Contract Number, Work Order Number and Title 2. Work performed during the quarter 3. Work to be performed in the following quarter 4. Requested modifications (i.e., to funding, schedule, or scope) *see separate instructions for requesting approval of modifications 5. An updated Exhibit “D” Progress Schedule

Draft Final Report – The draft final report should be submitted to Sandra Bell, Contacts Administrator at Sandra.Bell@dot.state.fl.us or 605 Suwannee Street, MS 30, Tallahassee, FL 32399-0450. The draft final report will be edited for grammar, clarity, organization, and readability prior to submission to the Department for technical approval. The editor providing the review will sign a cover sheet attesting to such review prior to submission. The provision for editorial services will be the Principal Investigator’s responsibility (the author or a designated party may perform the review). It is expected that a well-written, high quality report will be submitted. Reports failing to meet this requirement will summarily be rejected. The only changes allowable between the draft final report and the final report will be those changes requested by the Project Manager.

Final Report A minimum of 13 copies of the final report will be delivered to: The Research Center, 605 Suwannee Street, MS 30, Tallahassee, FL 32399-0450. A camera ready unbound original, and an electronic copy is MS Word format on CD no later than the end date of the RWPO. One electronic copy in MS Word format of a Summary of the Final Report to include the following four sections: Background, Objectives, and Supporting Tasks, Finding and Conclusions, and the Benefit of the Project. The Summary shall be a separate document and should be approximately 500 words in length. All Final Reports shall contain a completed Technical Report Documentation Form #F.1700.7, immediately after the title page. All Final Reports published shall contain a page after the Report Documentation Form that states the following: (1) The opinions, findings and conclusions expressed in this publication are those of the authors and not necessarily those of the State of Florida Department of Transportation, or the U.S. Department of Transportation. (2) Prepared in cooperation with the State of Florida Department of Transportation and the U.S. Department of Transportation. All Final Reports should be bound with a front and back cover that is acceptable to the Department. Other deliverables – Additional deliverables for this project will include the following: • A technical memorandum summarizing Task 1 Note: All materials printed under the contract will have the FDOT, USF and CUTR logos.

IV.  Project Schedule

V.  Project Budget

Notes: This budget does not reflect any federal participation. The project team will include faculty, students, and secretarial and other support staff who will work directly on the project and whose costs are reflected in the direct costs of the project as listed above. Budget requests includes salaries for clerical and administrative staff, postage, telephone calls, office supplies, general purpose software, subscriptions, and/or memberships.

VI. Equipment

No equipment is envisioned to be purchased under this project.

VII. Travel

No travel is required.

VIII. Student Involvement

A graduate research assistant will carry out much of the work under the direction of the PI.

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