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THE PLACE OF USEFUL LEARNING

Transport Planning
Project Appraisal:
User Costs & Benefits
How much is an hour of time worth?

Value of time (VoT) depends on purpose, mode and other factors

Purpose
Business – Driver, Travelling for business
(e.g. car driver travelling for business is worth £14.86 per hour (WebTAG, DfT)

Commuting

Social
Value of time

Has time value?

How can “value of time” (VOT) be measured?

Travel time reductions are regarded as a benefit arising from a

transport improvement project

VOT varies by journey purpose

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VOT = -
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Value of time

VOT equivalent to the rate of substitution between (perceived)

times and costs of travelling at constant utility

UC = a – θ(cost) – ϒ(travel time)

VOT = ϒ / θ
note – ϒ units are utils/min and θ units are utils/£

e.g.

UC = 2.2 – 0.2(cost) – 0.03(travel time)

where cost (£) and travel time (mins)

VOT = - 0.03 / - 0.2 = £0.15 per minute