Travel Mode Choice Behavior of Different Income Groups Based on the Value of Time

Abstract

The value of travel time (VOT) plays a critical role in transportation project evaluation and policy design. An in-depth analysis of VOT across high-, middle-, and low-income groups provides valuable insights for optimizing transportation policies and infrastructure planning, particularly in alleviating congestion and improving system efficiency. By capturing heterogeneous perceptions of travel time among different income groups, transportation systems can better accommodate diverse user needs and enhance overall social welfare. In this study, a stated preference (SP) survey is designed using an orthogonal experimental approach. Based on the collected SP data from different income groups, a multinomial Logit (MNL) model is developed under the random utility maximization framework to analyze travel mode choice behavior. The value of time for each income group is estimated by examining trade-offs between travel time and cost across alternative modes. The results indicate significant heterogeneity in VOT across income groups. High-income individuals exhibit a stronger preference for time savings and are more willing to pay higher costs for reduced travel time, reflecting a greater emphasis on efficiency. In contrast, middle-income groups tend to balance travel time and cost, while low-income groups show higher cost sensitivity and relatively lower willingness to pay for time savings. These findings provide important implications for differentiated transportation policy design and infrastructure allocation, contributing to improved system efficiency, better demand–supply matching, and more equitable distribution of social resources.