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Capitalization of BRT network expansions effects into prices of non-expansion areas

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  • Rodríguez, Daniel A.
  • Mojica, Carlos H.
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    Abstract

    A before and after hedonic model is used to determine the property value impacts on properties already served by the transit system caused by extensions to Bogotá's bus rapid transit system. Asking prices of residential properties belonging to an intervention area (NÂ =Â 1407 before, 1570 after) or a control area (NÂ =Â 267 before, 732 after) and offered for sale between 2001 and 2006 are used to determine capitalization of the enhanced regional access provided by the extension. Properties offered during the year the extension was inaugurated and in subsequent years have asking prices that are between 13% and 14% higher than prices for properties in the control area, after adjusting for structural, neighborhood and regional accessibility characteristics of each property. Furthermore, the appreciation is similar for properties within 500Â m and properties between 500Â m and 1Â km of the BRT.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part A: Policy and Practice.

    Volume (Year): 43 (2009)
    Issue (Month): 5 (June)
    Pages: 560-571

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    Handle: RePEc:eee:transa:v:43:y:2009:i:5:p:560-571

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    Keywords: Bus rapid transit Hedonic model Network expansion effects Mass transit Value capture;

    References

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    Cited by:
    1. Luca D’Acci, 2014. "Monetary, Subjective and Quantitative Approaches to Assess Urban Quality of Life and Pleasantness in Cities (Hedonic Price, Willingness-to-Pay, Positional Value, Life Satisfaction, Isobenefit Lines)," Social Indicators Research, Springer, vol. 115(2), pages 531-559, January.
    2. Dubé, Jean & Legros, Diègo & Thériault, Marius & Des Rosiers, François, 2014. "A spatial Difference-in-Differences estimator to evaluate the effect of change in public mass transit systems on house prices," Transportation Research Part B: Methodological, Elsevier, vol. 64(C), pages 24-40.
    3. Deng, Taotao & Nelson, John D., 2013. "Bus Rapid Transit implementation in Beijing: An evaluation of performance and impacts," Research in Transportation Economics, Elsevier, vol. 39(1), pages 108-113.
    4. Dubé, Jean & Rosiers, François Des & Thériault, Marius & Dib, Patricia, 2011. "Economic impact of a supply change in mass transit in urban areas: A Canadian example," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 46-62, January.

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