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Value of travel time; Water supply; Africa; Discrete choice experiment

2015-05-28

A Simple Stated Preference Tool for Estimating the Value of Travel Time in rural Africa

Despite its importance in benefit-cost analysis in the water supply, transportation, and health care sectors, there are relatively few empirical estimates of the value of travel time savings (VTT) in low-income countries, particularly in rural areas. Analysts instead often rely on a textbook “rule of thumb” of valuing time at 50% of prevailing unskilled wage rates, though these benchmarks have little empirical support in these settings. We estimate the value of travel time through the use of a repeated discrete choice stated preference exercise.