Evaluating Alternative Operations Strategies to Improve Travel Time ...

SHRP 2 L11: Final Appendices
Step 4 – Calculate the Road User Value of Reliability Change
A. Value of time for different vehicle classes
Vehicle Class Volume 1
(Avg AM (4 hours))
Value of Time
($/minute)
Single Occupancy 11,484 $ 0.30
High Occupancy 2,871 $ 0.60
Truck 1,595 $ 0.83
1
Average a.m. hourly volume (over 4 hours for a 3 lane facility)
B. Value of Reliability Improvement for:
• Single occupancy vehicles = 11,484 X 0.30 X (0.31-0.14) = $585.68/mile
• High occupancy vehicles = 2,871 X 0.60 X (0.31-0.14) = $292.84/mile
• Trucks = 1,595 X 0.83 X (0.31-0.14) = $225.05/mile
C. Total length of the highway = 10 miles
∴Total Value of Reliability Improvement for the average a.m. peak hour
= ($585.68 + $292.84 + $225.05) X 10 (miles) ≈ $11,036
D. Total Annual Value of Reliability Improvement = 252 Weekdays/Year
∴Total
Value of Reliability Improvement per Year (average a.m. peak hour)
= $11,036 X 252 days ≈ $2,781,000
It is important to note that these savings are for the average AM peak hour only and
not for the entire day. This example could be repeated for other periods of the day
where the speed and variability can be appropriately aggregated, as was done for the
AM peak period in this example.
The annual value of reliability improvement could be compared to the annual costs of the strategy
or improvement in a Benefit-Cost Analysis.
DETERMINING THE ECONOMIC BENEFITS OF IMPROVING TRAVEL-TIME RELIABILITY Page B-47