The Value of Travel-Time: Estimates of the Hourly Value of Time for Vehicles in Oregon 2003

 

Changes to the transportation system or transportation polices have the potential to affect travel-time and related costs. The purpose of this paper is to provide estimated values of travel-time for vehicles driving on Oregon roads.

 

The value of one hour of vehicle travel-time is estimated for three vehicle categories using Oregon wage data. The estimates are presented in Table 1. When using these estimates to make regulatory or investment decisions, a range of estimates of the value of travel-time should be used for sensitivity analyses. USDOT guidelines for plausible ranges are presented at the end of this paper.

 

Estimated Value of One Hour of Travel-Time by Vehicle Class, Oregon 2003

 

Vehicle Class      Average Value
Automobiles           $15.31

Light Trucks           $19.53

Heavy Trucks         $30.43

 

Download a PDF of the full report :  Value of Travel-Time: 2003

 

 

Highway congestion is a problem in major cities in Oregon and across the United States. The direct cause is a combination of increasing demand for highway capacity, as indicated by increasing vehicle miles traveled (VMT), and a fairly flat roadway supply (see Figure 1).

 

“Area pricing” charges a fee for VMT within a defined area during set peak hours. The fee applies to use of all highway facilities in that area without differentiation by jurisdiction or type of facility. Area pricing has many advantages over traditional forms of congestion pricing. The advantages occur because area pricing charges are based on general location and general congestion level. The trade-off is that area pricing is not specific in terms of particular facility, exact location, or level of congestion. More…

 

 

 

 

From the start of 2005 through the beginning of March, the retail price of regular gasoline on the West Coast has been between 10 and 20 percent higher than a year ago.  The main cause for this increase is the price of crude oil, which has been between 30 and 50 percent higher than a year ago over the same period, with closing prices over $50 a barrel in recent weeks.  This high cost of oil can be mostly attributed to current and expected strong demand, concerns about supply disruptions, and the weakening dollar.

 

What does this mean for Oregon consumers as the industry begins to gear-up for the summer driving season?  The Energy Information Administration’s March forecast predicts U.S. gasoline prices will continue to rise and peak in May at an average of $2.15 per gallon.  The West Coast has been about five percent higher than the national average so far this year, which would translate into a peak of $2.25 per gallon in May with prices remaining above $2 a gallon throughout the year.  The bottom line is that consumers should prepare for higher prices at the pump throughout the driving season.