Keith Vodden Dr. Douglas Smith - Transports Canada

Analysis and Estimation of the Social Cost of Motor Vehicle Collisions in Ontario
economics, we have merged two sets of data. The first set is from the COMPASS
system and consists of estimates of the time delays on Ontario freeways and major
highways associated with motor vehicle collisions.
COMPASS is an Advanced Freeway Traffic Management System developed by
the Ontario Ministry of Transportation (MTO) to respond to traffic congestion problems,
primarily on Ontario’s divided highways. COMPASS helps increase roadway efficiency
and roadway safety by:
• Allowing for the prompt detection and removal of freeway incidents and vehicle
breakdowns.
• Providing accurate and timely freeway incident and delay information to
motorists.
• Effectively managing peak rush hour traffic flow through a variety of traffic
control devices.
In this project, we have used data from the COMPASS system on delays as a
critical data input. We have used COMPASS data from the MTO Toronto system (there
are two other COMPASS systems in Burlington and Ottawa) covering Highway 401
from Highway 410 to Brock Road These data are then extrapolated to the entire
Province, on the basis of population data that we assume are related to traffic volumes.
The methodology described in this section provides estimates of delays from
motor vehicle collisions, measured in person hours. These delays are then combined with
wage data from Statistics Canada for representative members of the population to value
these time delay costs. In addition to these time delay costs, we have also estimated the
incremental costs associated with the use of more motor vehicle fuel in a congested traffic
context and the environmental costs associated with this additional and less efficient fuel
use.
b) Lost time
The wage rate that we use to value time spent in traffic delays resulting from
motor vehicle collisions is derived from Statistics Canada data on average wage rates
(Statistics Canada-The Labour Market Cat. No.: 71-222-XWE). This value for 2004 is
just under $18 per hour. There is an extensive literature including Small (1992) and
Brownstone et al. (2002) that discusses what fraction of this wage should be used for
traffic delays. Small argues that based on his review of an extensive literature in this area
that the fraction should be 50%. The use of a fractional value reflects the fact that all
persons delayed are not necessarily employed and that many passengers will be children.
Brownstone et al. argue that revealed preference methods of determining willingness to
pay show that commuters place quite a high value on time, possibly higher than the
market wage. Substantial voluntary payment for reduced congestion on Ontario’s
Highway 407 provides a related example of this willingness to pay.
150 TNS Canadian Facts, Social and Policy Research