Benefits of travel time savings for freight transportation : beyond the costs



provided by Research Papers in Economics

Benefits of Travel Time Savings for Freight Transportation:
beyond the Costs.

Abstract

The purpose of this presentation is to investigate whether current practices in Cost Benefit
Analysis do not underestimate the actual benefits accruing to the economy when transport investment
reduces transport time.

In a first section we define the different time related attributes of transport. In a second section we
investigate the current practices in various European countries. We find that the overwhelming
majority of countries estimate the benefits of improved network through the reduction in transport
costs. In a third section we advocate the idea that the total benefits may exceed this mere cost
reduction. We show that shippers exhibit a significant willingness to pay for faster deliveries and
examine the cause of this situation. We demonstrate that a benefit analysis based on traditional
definitions of surplus should take into account these additional effects. This question should be
carefully distinguished from the recurrent question of indirect effects. Eventually we try to identify
methods to measure these extra benefits and the likely magnitude of these effects. We review results
obtained by previous attempts to measure this willingness to pay, based on RP data and SP exercises.

Jérôme Massiani.

C.R.E.T.E.I.L.

Université Paris12, Ave du général de gaulle.

94010 Créteil France.

Phone: 00 33 1 45 17 71 14

Fax: 00 33 1 45 17 71 48

eMail: [email protected]

Keywords

Freight value of time, cost benefit analysis, double counting, surplus.



More intriguing information

1. Bidding for Envy-Freeness: A Procedural Approach to n-Player Fair Division Problems
2. The name is absent
3. The name is absent
4. CHANGING PRICES, CHANGING CIGARETTE CONSUMPTION
5. The changing face of Chicago: demographic trends in the 1990s
6. A Critical Examination of the Beliefs about Learning a Foreign Language at Primary School
7. Estimated Open Economy New Keynesian Phillips Curves for the G7
8. Business Cycle Dynamics of a New Keynesian Overlapping Generations Model with Progressive Income Taxation
9. EU Preferential Partners in Search of New Policy Strategies for Agriculture: The Case of Citrus Sector in Trinidad and Tobago
10. Wirtschaftslage und Reformprozesse in Estland, Lettland, und Litauen: Bericht 2001
11. Reconsidering the value of pupil attitudes to studying post-16: a caution for Paul Croll
12. An institutional analysis of sasi laut in Maluku, Indonesia
13. Dementia Care Mapping and Patient-Centred Care in Australian residential homes: An economic evaluation of the CARE Study, CHERE Working Paper 2008/4
14. On the Existence of the Moments of the Asymptotic Trace Statistic
15. Imputing Dairy Producers' Quota Discount Rate Using the Individual Export Milk Program in Quebec
16. How Offshoring Can Affect the Industries’ Skill Composition
17. EXECUTIVE SUMMARIES
18. Heterogeneity of Investors and Asset Pricing in a Risk-Value World
19. Agricultural Policy as a Social Engineering Tool
20. From Communication to Presence: Cognition, Emotions and Culture towards the Ultimate Communicative Experience. Festschrift in honor of Luigi Anolli