I.T. Transport Ltd. Department for DFID International Development THE VALUE OF TIME IN LEAST DEVELOPED COUNTRIES: THE AFRICAN STUDIES (R8307) FINAL REPORT Unpublished Project Report Contract No. R8307 July 2005 I.T. Transport Ltd., Ardington, Oxfordshire, United Kingdom Sector: Transport Theme: T4: Increase the efficiency of national and regional transport systems whilst safeguarding the interest of poor and vulnerable users Project Title: The Value of Time in Least Developed Countries: The African Studies Contract No.: R8307 APPROVALS Project Quality Manager reviewed THE VALUE OF TIME IN LEAST DEVELOPED COUNTRIES: THE AFRICAN STUDIES (R 8307) This document is an output from a DFID-funded Knowledge and Research (KaR) project, carried out for the benefit of developing countries. The views expressed are those of the author(s) and not necessarily those of the DFID. i ACKNOWLEDGEMENT We gratefully acknowledge the financial assistance of the UK Department for International Development (DFID) for conducting the study. The study required assistance from a large number of people and organisations. Therefore, the list of people and organisations to thank is very long. We would like to thank every person and organisation who helped to make the project a success, including the respondents in Ghana and Tanzania who agreed to be interviewed and spent a considerable amount of time during the interview. ii TABLE OF CONTENTS ACKNOWLEDGEMENT............................................................................................. II LIST OF TABLES.......................................................................................................V LIST OF FIGURES ....................................................................................................VI ABBREVIATIONS ....................................................................................................VII GLOSSARY OF TERMS .........................................................................................VIII MAP I: GHANA SHOWING NORTHERN REGION & YENDI DISTRICT..................IX MAP II: TANZANIA SHOWING KILIMANJARO REGION AND MOSHI DISTRICT ..X EXECUTIVE SUMMARY ...........................................................................................XI 1. INTRODUCTION............................................................................................... 1 2. STUDY AREAS AND METHODOLOGIES............................................................. 5 2.1 SOCIO-ECONOMIC AND TRANSPORT CONTEXTS OF THE STUDY AREAS...............................5 2.1.1 Socio-economic and transport contexts of Yendi District, Northern Region, Ghana................5 2.1.2 Socio-economic and transport contexts of Moshi Rural District, Kilimanjaro Region, Tanzania ........................................................................................................................................................7 2.2 OVERALL STUDY METHODOLOGY ....................................................................................10 2.2.1 Qualitative methodology used in Ghana .......................................................................................13 2.2.2 Tanzania qualitative informing methodology................................................................................19 2.2.3 Comparison of qualitative methodologies used in Ghana and Tanzania.................................22 2.3 QUANTITATIVE METHODOLOGIES.....................................................................................23 2.3.1 Use of household data in the identification of poor and non-poor travellers ...........................23 2.3.2 Revealed preference, stated preference and travel purpose surveys......................................26 2.4 SP AND RP DATA ANALYSIS STRATEGIES AND MODEL ESTIMATION..................................27 2.5 SUMMARY OF THE CHAPTER ...........................................................................................27 3. THRESHOLD EXPENDITURES, TRAVELLERS’ LIVING STANDARDS, PURPOSE OF TRAVEL & ACTIVITY PATTERNS .................................................. 28 3.1 THRESHOLD PER CAPITA EXPENDITURE AND IDENTIFICATION OF RESPONDENTS’ LIVING STANDARDS .........................................................................................................................28 3.2 TRAVEL PURPOSE ..........................................................................................................31 3.3 ACTIVITY PATTERNS .......................................................................................................36 3.4 SUMMARY OF THE CHAPTER ...........................................................................................38 4. TRAVEL TIME SAVING VALUES........................................................................ 39 4.1 ESTIMATED BASE IN-VEHICLE & WALKING TIME SAVING VALUES.......................................39 4.2 ESTIMATED VALUES FOR OTHER TRAVEL AND SOCIO-ECONOMIC ATTRIBUTES..................42 4.3 SUITABILITY OF RP AND SP METHODS ............................................................................48 4.4 COMPARISONS OF TRAVEL TIME SAVING VALUES ............................................................49 4.4.1 Inter-country comparison of travel time saving values................................................................49 4.4.2 Inter-country comparison of travel and personal attribute values as a proportion of IVT values...........................................................................................................................................................50 4.4.3 Estimated travel time values and World Bank guidance ............................................................51 4.4.4 Adjustments to reflect resource values .........................................................................................52 4.5 SUMMARY OF THE CHAPTER ...........................................................................................53 5. CONCLUSIONS AND RECOMMENDATIONS .................................................... 54 iii 5.1 KEY FINDINGS ................................................................................................................55 5.2. CONCLUSIONS...............................................................................................................56 5.3 APPLICABILITY OF CONCLUSIONS FROM THE BANGLADESH STUDY TO THE AFRICAN STUDY ............................................................................................................................................59 5.4 RECOMMENDATIONS FOR APPRAISAL METHODOLOGY AND POLICY...................................59 BIBLIOGRAPHY & REFERENCES ......................................................................... 62 LIST OF APPPENDICES Appendix I Definition of VoT, Theories Concerning VoT etc. Appendix II Bangladesh Rural Travel Time Saving Values Appendix III Basic Facts: Ghana and Tanzania Appendix IV Road Selection Criteria Appendix V Description of Study Roads Appendix VI Sample Quantitative Questionnaires Appendix VII Focus Group Discussions Notes (Tanzania) Appendix VIII Types of Questionnaire Surveys in Ghana & Tanzania Appendix IX Alternatives, Choice Options and Values of the Variables in the Stated Preference (SP) Experiments Appendix X Sample of Visual-Aid Cards Used in Ghana Appendix XI Final Tree Structures Appendix XII Model Estimation Results Appendix XIII Ghana RP Model Statistics Appendix XIV Main Reasons for Unsuitability of RP Appendix XV Calculations of Rural Average Wage Rates for Ghana and Tanzania Appendix XVI Estimation of the SCFs and the SWR Factors Appendix XVII Types of Photographs Used to Explain Travelling Conditions iv LIST OF TABLES Table 1: Number of households surveyed in Ghana and Tanzania .......................................12 Table 2:Data collection methods (Ghana)..............................................................................15 Table 3: Summary qualitative survey findings (Ghana)..........................................................17 Table 4: Time block definitions...............................................................................................19 Table 5 List of focus groups conducted for informing stage in Tanzania ...............................20 Table 6: Independent variables used in Ghana and Tanzania...............................................25 Table 7: Coefficients of significant variables (Ghana)............................................................26 Table 8: Number of different questionnaires administered.....................................................26 Table 9: Poverty threshold levels in local currency ................................................................29 Table 10: Proportion of preference survey respondents below upper and lower poverty thresholds .......................................................................................................................29 Table 11: Overall and gender disaggregated purpose of travel .............................................32 Table 12: Disaggregated purpose of travel for wider socio-economic needs.........................33 Table 13: Proportion of trips made for work related purposes ...............................................33 Table 14: Single versus multiple purpose trips.......................................................................35 Table 15: Average daily time allocation by the respondents in hours (Ghana)......................37 Table 16: Average daily time allocation by the respondents in hours (Tanzania)..................37