Disamenties of Living Close to Transit Tracks: Evidence from Singapore

33 Pages Posted: 28 Sep 2021

See all articles by Mi Diao

Mi Diao

National University of Singapore (NUS) - Department of Real Estate

Qiang Li

National University of Singapore (NUS) - Department of Real Estate

Tien Foo Sing

National University of Singapore (NUS) - Department of Real Estate

Changwei Zhan

National University of Singapore (NUS) - Department of Real Estate

Date Written: September 28, 2021

Abstract

Urban transit systems bring social and economic benefits but generate disamenities to residents who live close to transit tracks. This paper empirically estimates the real costs of noise disamenities generated from mass rapid transit (MRT) tracks on public housing prices in Singapore. We use the aboveground and underground rail tracks in our identification strategy and find that noise disamenities from MRT trains cause a depreciation of approximately 3% to 4% in public housing prices for every 1 km reduction in the distance to the MRT rail tracks. Singapore’s government erects noise barriers along selected segments of the MRT tracks to mitigate noise. Difference-in-differences (DID) tests on the policy shock show that housing prices increase by approximately 2% and 4% after the announcement and completion of noise barrier projects, respectively. The welfare gains of the project to public housing residents are estimated at approximately 700 million Singapore dollars.

Keywords: Urban Transit System, Negative Externalities, Disamenities, Noise Barriers, Public Housing

JEL Classification: R14, R3, R4

Suggested Citation

Diao, Mi and Li, Qiang and Sing, Tien Foo and Zhan, Changwei, Disamenties of Living Close to Transit Tracks: Evidence from Singapore (September 28, 2021). Available at SSRN: https://ssrn.com/abstract=3932579 or http://dx.doi.org/10.2139/ssrn.3932579

Mi Diao

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Qiang Li

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Tien Foo Sing (Contact Author)

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Changwei Zhan

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore
Singapore
6586091755 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
19
Abstract Views
115
PlumX Metrics