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

See all articles by Tao Li

Tao Li

University of Florida - Department of Finance, Insurance and Real Estate

Date Written: September 1, 2017

Abstract

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

Suggested Citation

Li, Tao, The Value of Access to Rail Transit in a Congested City: Evidence from Housing Prices in Beijing (September 1, 2017). Real Estate Economics, forthcoming. Available at SSRN: https://ssrn.com/abstract=2831478 or http://dx.doi.org/10.2139/ssrn.2831478

Tao Li (Contact Author)

University of Florida - Department of Finance, Insurance and Real Estate ( email )

Warrington College of Business
Gainesville, FL 32611
United States

HOME PAGE: http://warrington.ufl.edu/contact/profile.asp?WEBID=7628

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