This paper discusses the new values for time savings and accident prevention, whose adoption was announced by the Department of Transport in March 1987, following its latest phase of research on time savings and accident prevention. The values are based on 1985 prices and are substantially higher than the corresponding previous values; the assessment of the costs of damage in accidents remains unchanged. Some of the relevant arguments used by the Department and by other transport experts are outlined. For example, the Department will continue to recommend the use of the same time savings values for commuters as for other `non-work' travellers; this approach was opposed by the Leitch Committee (see IRRD 230248) but supported in a research report by the MVA consultancy. The Department's rejection of a `Willingness to pay' basis for evaluating the benefits of accident reduction has been strongly criticised by Professor Michael Jones-Lee, who advocates a much higher value for avoiding a fatal road accident. Finally, the paper discusses the implications of the changes.
Abstract