Valuation of Urban Rail Service: Experiences from Tokyo, Japan

Hironori Kato

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Transportation Planning and Optimization transportation and logistics systems Transport and Economic Policies

Abstract

Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) introduced the Cost-Benefit Analysis (CBA) Manual for rail projects in 1998 to provide a standard methodology for valuing rail service in Japan. The Manual contains detailed methods for valuing the improvement of rail transportation services by the components of service as well as by their multipliers and parameters. Some parts of the CBA Manual may be highly dependent on the uniqueness of the Japanese urban rail market; however, it may be worthwhile for Japan to share its experiences with other Organisation for Economic Co-operation and Development (OECD) member countries. Additionally, although a number of studies have examined valuations of travel time for road traffic in Japan (for example, Kato et al., 2010b; 2011), valuations for public transit services have been rarely reported (an exception is Kato, 2007). This paper aims to describe the government’s manual and report the recent practices of valuing urban rail transportation services in Japan.

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