The Last Mile Matters: Impact of Dockless Bike Sharing on Subway Housing Price Premium

Management Science 2021

49 Pages Posted: 22 Jun 2018 Last revised: 17 Mar 2021

See all articles by Junhong Chu

Junhong Chu

NUS Business School

Yige Duan

University of British Columbia (UBC) - Vancouver School of Economics

Xianling Yang

Independent

Li Wang

Independent

Date Written: January 1, 2021

Abstract

Dockless bike sharing provides a convenient and affordable means of transport for urban residents. It solves the “last-mile problem” in public transport by reducing the travel cost between home and subway stations and thus increasing the attractiveness of distant apartments. This may affect the relationship between housing price and distance to subway and reduce the price premium enjoyed by proximate apartments. Using resale apartment data in 10 major cities in China, a difference-in-differences approach at the apartment level, and a two-step estimator at the city-month level, we find that the entry of bike sharing reduces the housing price premium by 29% per km away from a subway station. The effect is equivalent to a reduction of 1,893–2,127 CNY (282–317 USD) in commuting costs per household per annum over 30 years. The effect is driven by a relative increase in the listing price of, and in the demand for, apartments distant from vis-à-vis proximate to subway stations.

Keywords: sharing economy, dockless bike sharing, the last mile problem, urban economics

JEL Classification: D62, O33, R31, R41

Suggested Citation

Chu, Junhong and Duan, Yige and Yang, Xianling and Wang, Li, The Last Mile Matters: Impact of Dockless Bike Sharing on Subway Housing Price Premium (January 1, 2021). Management Science 2021, Available at SSRN: https://ssrn.com/abstract=3195004 or http://dx.doi.org/10.2139/ssrn.3195004

Junhong Chu (Contact Author)

NUS Business School ( email )

15 Kent Ridge Drive
Singapore, 119245
Singapore
65-65166938 (Phone)

HOME PAGE: http://bizfaculty.nus.edu/faculty-profiles/157-junhong

Yige Duan

University of British Columbia (UBC) - Vancouver School of Economics ( email )

997-1873 East Mall
Vancouver, British Columbia V6T 1Z1
Canada

Xianling Yang

Independent

Li Wang

Independent

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