The Value of Access to Rail Transit in a Congested City: Evidence from Housing Prices in Beijing
Real Estate Economics, forthcoming
51 Pages Posted: 1 Sep 2016 Last revised: 15 Jul 2018
Date Written: September 1, 2017
Using unique datasets of Beijing's congestion patterns and housing prices, I find that consumers are willing to pay significantly more for access to rail transit in more congested areas. Transit accessibility, however, offers little travel advantage outside of dense urban areas. The expansion of the metro network mitigates the costs of road congestion, creating both private and social benefits. Two policy initiatives aimed at reducing congestion are found to have achieved positive value effects. Further analysis reveals heterogeneous demand for accessibility, with wealthier residents and those owning fewer cars paying a higher premium for access to rail transit.
Keywords: Traffic congestion, Rail transit, Willingness to pay
JEL Classification: O18, P25, R21, R4
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