International Choice Modelling Conference, International Choice Modelling Conference 2017

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Meta-analysis on the value of travel time savings in Africa
Collins Teye, Peter Davidson, Helen Porter

Last modified: 28 March 2017

Abstract


Value of travel time savings is the principal metric of economic benefits for evaluating urban transport projects across the world. The World Bank estimate that it accounts for about 75% of the total estimated benefits of a project, with even a higher value reported in the UK. The increasing move by many Africa governments to seek for alternative sources of funding to bridge the infrastructure deficit gap has made the evaluation of this metric very crucial for transport project viability and sustainability as investors are attracted to invest in projects that are likely to yield good returns. Through our involvements in several PPP studies of toll roads in Africa, and a survey of other studies on the subject we present, arguably the first meta analysis on the outcomes of various value of time savings in different countries on the continent. The meta-analysis sheds some light on the variation of the value of travel time savings with respect to GDP per capita and exchange rate with the estimated elasticity of the value of time with respect to GDP per capita evaluated at about 1.3 and 1.0 with respect to exchange rate. The paper provides a unique opportunity to compare this important metric across countries and also the means of evaluating the value of travel time savings of other African countries where studies of this nature is lacking through the use of the estimated meta-model.

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