Value of Time: Speeding Behavior and Gasoline Prices
RFF Academic Seminar
Hendrik Wolff, Assistant Professor of Economics, University of Washington, Department of Economics
Do drivers reduce speeds when gasoline prices are high? Previous research investigating this energy conservation hypothesis produced mixed results (Burger and Kaffine, 2009). We take a fresh look at the data and estimate a significant negative relationship between speeding and gasoline prices. This presents a new methodology of deriving the ‘Value of Time’ (VOT) based on the intensive margin (previous VOT studies compare across the extensive margin) which we argue has important advantages to circumvent potential omitted variable bias in the estimation of the VOT. We find the VOT to be 50% of the gross wage rate and discuss potential direction of biases.
Friday, January 13, 2011
12:00 - 1:30 p.m.
Lunch will be provided.
7th Floor Conference Room
1616 P St. NW
Washington, D.C. 20036
All seminars will be in the 7th Floor Conference Room at RFF, 1616 P Street NW. Attendance is open, but involves pre-registration no later than two days prior to the event. For questions and to register to an event, please contact Khadija Hill at firstname.lastname@example.org (tel. 202-328-5174). Updates to our academic seminars schedule will be posted at www.rff.org/academicseminarseries.