Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. C. D. Mote, Jr., is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Victor J. Dzau is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academyâs purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. C. D. Mote, Jr., are chair and vice chair, respectively, of the National Research Council. The Transportation Research Board is one of six major divisions of the National Research Council. The mission of the Transporta- tion Research Board is to provide leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Boardâs varied activities annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individu- als interested in the development of transportation. www.TRB.org www.national-academies.org
TABLE OF CONTENTS Preface and Overview ........................................................................................................................ ii 1 Introduction: Value of Time Definition and Use ............................................................................ 1 1.1 What Is the Value of Time and Why Do We Care? ................................................................................. 1 1.2 How the Value of Time Is Used in Aviation Investment Analysis ........................................................... 2 1.3 Why the Value of Time Varies ................................................................................................................ 4 1.4 How this Guide Can Help ........................................................................................................................ 4 2 Methodology for Valuing Aviation Travel Delay ............................................................................ 6 2.1 Value of Time Breakdown by Trip Segment ........................................................................................... 6 2.2 Analysis Elements ................................................................................................................................. 11 2.3 Analysis Issues Regarding Measurement of Delay ............................................................................... 12 2.4 Analysis Issues Regarding Impact of Changes in Travel Time and Delay on Passenger Behavior ........ 13 3 Five Step Process ....................................................................................................................... 15 Step 1: Screen Project for Applicability....................................................................................................... 15 Step 2: Map Project to Time Categories ..................................................................................................... 17 Step 3: Calculate Travel Delay ..................................................................................................................... 20 Step 4: Calculate Value of Delay ................................................................................................................. 23 Step 5: Apply to Benefit Cost Analysis ........................................................................................................ 25 4 Examples Illustrating Time Valuation .......................................................................................... 28 Example A: Runway Extension Project........................................................................................................ 28 Example B: Ground Access Project ............................................................................................................. 33 Example C: Navigation Aid Upgrade Project ............................................................................................... 38 5 Conclusions and Recommendations............................................................................................ 42 6 References ................................................................................................................................. 44 Page i
