Accessibility and uncertainty: An empirical analysis of option value in transport
Are there option values for transport services? A few studies have tried to answer this question through various stated preference methods, but we do not know much about its magnitude in different contexts. In this paper, we summarize the theory on option value, present previous empirical work conce...
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| Format: | Article |
| Language: | English |
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University of Minnesota Libraries Publishing
2021-04-01
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| Series: | Journal of Transport and Land Use |
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| Online Access: | https://www.jtlu.org/index.php/jtlu/article/view/1783 |
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| author | Anders Bondemark Erik Johansson Fredrik Kopsch |
| author_facet | Anders Bondemark Erik Johansson Fredrik Kopsch |
| author_sort | Anders Bondemark |
| collection | DOAJ |
| description | Are there option values for transport services? A few studies have tried to answer this question through various stated preference methods, but we do not know much about its magnitude in different contexts. In this paper, we summarize the theory on option value, present previous empirical work concerning transport, and discuss its links to accessibility. Accessibility can be seen as the end product of the transport system, and the argument we pursue is that option value is a component of accessibility. Therefore, estimations of the option value ought to be connected to the marginal accessibility change of an optional transport mode. The concept of substitutability has the potential to meet this criterion. It is the degree to which an alternative trip can replace an initially preferred trip, or, put differently, how accessibility at a location is composed. We conduct an empirical application to test whether the variation in housing transaction prices is associated with substitutability. We find that housing prices are higher where the accessibility is built up by several transport modes, given any level of total accessibility. We interpret this as households, on average, are willing to pay a risk premium to keep optional transport modes available. |
| format | Article |
| id | doaj-art-559ff822e6064663905f6981a6a4bdcf |
| institution | OA Journals |
| issn | 1938-7849 |
| language | English |
| publishDate | 2021-04-01 |
| publisher | University of Minnesota Libraries Publishing |
| record_format | Article |
| series | Journal of Transport and Land Use |
| spelling | doaj-art-559ff822e6064663905f6981a6a4bdcf2025-08-20T01:51:04ZengUniversity of Minnesota Libraries PublishingJournal of Transport and Land Use1938-78492021-04-0114110.5198/jtlu.2021.1783Accessibility and uncertainty: An empirical analysis of option value in transportAnders BondemarkErik Johansson0Fredrik KopschLund UniversityAre there option values for transport services? A few studies have tried to answer this question through various stated preference methods, but we do not know much about its magnitude in different contexts. In this paper, we summarize the theory on option value, present previous empirical work concerning transport, and discuss its links to accessibility. Accessibility can be seen as the end product of the transport system, and the argument we pursue is that option value is a component of accessibility. Therefore, estimations of the option value ought to be connected to the marginal accessibility change of an optional transport mode. The concept of substitutability has the potential to meet this criterion. It is the degree to which an alternative trip can replace an initially preferred trip, or, put differently, how accessibility at a location is composed. We conduct an empirical application to test whether the variation in housing transaction prices is associated with substitutability. We find that housing prices are higher where the accessibility is built up by several transport modes, given any level of total accessibility. We interpret this as households, on average, are willing to pay a risk premium to keep optional transport modes available.https://www.jtlu.org/index.php/jtlu/article/view/1783Option value;AccessibilitySubstitutabilityHedonic pricingTransport economics |
| spellingShingle | Anders Bondemark Erik Johansson Fredrik Kopsch Accessibility and uncertainty: An empirical analysis of option value in transport Journal of Transport and Land Use Option value; Accessibility Substitutability Hedonic pricing Transport economics |
| title | Accessibility and uncertainty: An empirical analysis of option value in transport |
| title_full | Accessibility and uncertainty: An empirical analysis of option value in transport |
| title_fullStr | Accessibility and uncertainty: An empirical analysis of option value in transport |
| title_full_unstemmed | Accessibility and uncertainty: An empirical analysis of option value in transport |
| title_short | Accessibility and uncertainty: An empirical analysis of option value in transport |
| title_sort | accessibility and uncertainty an empirical analysis of option value in transport |
| topic | Option value; Accessibility Substitutability Hedonic pricing Transport economics |
| url | https://www.jtlu.org/index.php/jtlu/article/view/1783 |
| work_keys_str_mv | AT andersbondemark accessibilityanduncertaintyanempiricalanalysisofoptionvalueintransport AT erikjohansson accessibilityanduncertaintyanempiricalanalysisofoptionvalueintransport AT fredrikkopsch accessibilityanduncertaintyanempiricalanalysisofoptionvalueintransport |