The heterogeneity of value of travel time among cyclists and implications in policy appraisal

Abstract

The recent Norwegian value of time study (Ramjerdi, et al, 2010) addresses all modes of travel including cycle as main modes of travel. The main purpose of the cycle study was to provide estimates of the value of travel time savings, valuation of different cycling infrastructure, facilities and services as well as health effects of cycling.

Cyclists are a very heterogeneous group, at least in Norway. The focus of this paper is on the heterogeneity of value of time among cyclists and implications for policy design and appraisal. We identify distinct classes of cyclists with different values of travel time savings and consequently different valuations of cycle facilities and services. We also compare the resulting values of travel time (VTT) of a latent class model with those of a mixed logit model. The paper emphasizes the importance of identification of the different classes of cyclists.