Value of time

Time you spent travelling can't be spend on studying or working. In that sense, time is money. Geographer Andy Nelson (University of Twente) created a map to calculate how much time is wasted.

In transport economics,[1] the value of time is the opportunity cost of the time that a traveler spends on their journey. In essence, this makes it the amount that a traveler would be willing to pay in order to save time, or the amount they would accept as compensation for lost time.

One of the main justifications [citation needed] for transport improvements is the amount of time that travelers will save. Using a set of values of time, the economic benefits of a transport project can be quantified in order to compare them to the costs (thus forming the basis of cost-benefit analysis). In particular, savings (or, for that matter, increases) in travel time form part of the change in consumer surplus for a transport project.

  1. ^ Small, Kenneth A. (2012-12-01). "Valuation of travel time". Economics of Transportation. 1 (1–2): 2–14. doi:10.1016/j.ecotra.2012.09.002. ISSN 2212-0122.