In this study, we apply the contingent valuation method (CVM) toestimate
the value to railroad customers of the time that could besaved by taking the proposed
high speed railway in Taiwan. Usingdata from a 1990 personal survey designed by the
authors, we findconsumers are willing to pay 40 to 70 more than the currenthighest
price of a railway ticket to enjoy the time saving of takingthe faster train. This
premium is equivalent to 80 to 110 ofthe current wage rate. In addition, we also find
that the value ofthe time saved not only varies with the personal characteristics ofthe
respondent, but that a decreasing marginal value of time alsoexists.