Option Values in Passenger Transport - Research on the Perceived Value of Transport Options
Type
dissertation project
Start Date
July 2018
End Date
June 2022
Description
Means of transport are usually private goods, but their availability has the character of a public good. A suitable theory for the evaluation of such goods is provided by environmental economics. It can be assumed that users as well as non-users value certain modes of transport as personal backup options (or even as more abstract socio-cultural achievements). The option value of transport modes can therefore be understood as a kind of premium for individual access or mobility assurance.
Two market-based instruments are conceivable for skimming off at least part of the individual option value: subscriptions and insurance. Especially in the mobility sector, an increasing spread of subscription services with different availability levels is expected in the future (keyword: mobility as a service). In most cases, however, option values do not (yet) trigger market transactions. Therefore, contingent valuation methods and discrete choice experiments are primarily used to record them.
This dissertation project explores suitable methods to investigate which means of transport are valued in terms of option value, by whom and how. For this purpose, a conceptual model based on a comprehensive literature review is developed. It is expected that in addition to the attributes of the option mode, various personal characteristics as well as variables of the travel context influence the evaluation. The corresponding hypotheses will be developed and tested in the course of the dissertation project.
Two market-based instruments are conceivable for skimming off at least part of the individual option value: subscriptions and insurance. Especially in the mobility sector, an increasing spread of subscription services with different availability levels is expected in the future (keyword: mobility as a service). In most cases, however, option values do not (yet) trigger market transactions. Therefore, contingent valuation methods and discrete choice experiments are primarily used to record them.
This dissertation project explores suitable methods to investigate which means of transport are valued in terms of option value, by whom and how. For this purpose, a conceptual model based on a comprehensive literature review is developed. It is expected that in addition to the attributes of the option mode, various personal characteristics as well as variables of the travel context influence the evaluation. The corresponding hypotheses will be developed and tested in the course of the dissertation project.
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Eprints ID
247913
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Item type:Publication, Optionswert im Schweizer Personenverkehr: Relevante Grösse für wirtschaftliche und politische Entscheide(Schweizerische Verkehrswissenschaftliche Gesellschaft, 2023-10); ; - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Option Values in Public Transport(2020-01-17)Research project presentation at the Swiss Tourism and Hospitality Research Meeting 2020 in SierreType:conference contribution - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Option value of passenger transport: Examining the perceived value of transport options(2021-09-13)Many people appreciate certain means of transport as their backup modes without necessarily using them. In environmental economics, this phenomenon of non-consumptive benefit is called option value and has been discussed for decades. However, in transport research, there have only been a few explorative attempts to examine the concept empirically. This study aims at developing an instrument for the investigation of perceived option values in passenger transport. With the help of a survey tool, option valuations will be explained based on characteristics of the option mode, the travel context, and the personal context of the traveler. Furthermore, resulting valuations will be compared to market-proxies. Subscriptions for secondary modes, purchases of second vehicles, and mobility insurances are market-based instruments that incorporate (some) option value. These backup solutions limit risk or volatility of transport costs. Therefore, under certain assumptions, the identified option values can also be compared to the valuation of financial options. Because option values are highly context dependent, it is necessary to focus the analysis on (the inhabitants of) a specific region with its distinct transport system or options. This study proposes a methodology for the investigation of option values in passenger transportation in Switzerland for the first time.Type:conference paper - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Optionswerte im Personenverkehr: Erforschung des wahrgenommenen Werts von Transport-OptionenPeople value the availability of alternative means of transportation without necessarily using them. In environmental economics, this phenomenon of 'non-consumptive' benefits is called option value. Although the concept has been discussed for decades, only isolated attempts and exploratory approaches exist in transportation research. Circumstantial evidence from theory and practice indicates significant option values. The aim of this study is to develop a methodology to survey and analyze the perceived option value in passenger transport. Due to the high contextuality of the phenomenon, the study focuses on Switzerland with its highly integrated transport system. With an individualized survey, the contingent valuations of a representative sample are investigated based on actual commuting behavior. The values obtained are validated directly and indirectly, via hypothetical and real markets. It is shown that the direct query of option values via willingness to pay for a fictitious access fee (similar to a subscription or membership) yields plausible values. These are comparable to the fixed costs of holding personal option instruments (replacement vehicles, subscriptions, mobility insurance). The analysis shows that option valuations are mainly driven by attributes of the replacement mode (comfort class, speed, etc.) and the individual mobility situation (availability of backups, price elasticity of demand, etc.). The characteristics of the considered routes to work or education as well as socio-demographics make a smaller explanatory contribution to the level of perceived option values. As a rather conservative approximation, an average option value of around CHF 460 (median of CHF 180) per person and year can be derived from the study at hand. Extrapolated to the total Swiss population in employment or education, this results in about CHF 2.7 billion per year. For comparison, this amount corresponds to around 60% of the annual public transport subsidies in Switzerland. In addition to providing an economic explanation of the legitimacy of (politically intended) subsidies for the provision of mobility that is as equivalent as possible in public transport as in private transport, this study offers a wide range of substantive and methodological findings that serve further investigations and practical explorations of option value instruments in passenger transport.Type:doctoral thesis