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On joint railway and housing development: Housing-led versus railway-led schemes

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  • Ng, Ka Fai
  • Lo, Hong K.

Abstract

This paper develops a time-dependent framework to analyze the revenues and costs of housing and railway developments over time in a Transit Oriented Development, explicitly capturing the housing and railway development phasing. A bi-level mathematical program is formulated, in which the upper level optimizes the housing supply and railway development over time based on the perspective of a joint housing and railway developer, versus that of consumers and that of government. At the lower level, a nested logit framework is formulated to model the combined bid-rent process, residents’ location and travel choices in each period. Under certain assumptions, this study derives analytically the lead-lag relationships between housing development and railway development, based on the initial housing and transport conditions, as well as the stakeholders’ perspectives. The development strategies are generally different among the stakeholders, whilst possible win-win situations, in terms of developer profitability and consumer surplus, are identified under certain low housing density conditions, leading to a social optimum. This study also conducts sensitivity analyses to extend the results to multiple time periods and heterogeneous income classes, revealing that, for profitability, the joint developer may introduce housing development phasing that segregates residents of different income classes.

Suggested Citation

  • Ng, Ka Fai & Lo, Hong K., 2017. "On joint railway and housing development: Housing-led versus railway-led schemes," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 464-488.
    • Handle: RePEc:eee:transb:v:106:y:2017:i:c:p:464-488
    DOI: 10.1016/j.trb.2017.06.003
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    Cited by:

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    3. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Liu, Ronghui, 2018. "Mode choice and railway subsidy in a congested monocentric city with endogenous population distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 413-433.
    4. Peng, Ya-Ting & Li, Zhi-Chun & Schonfeld, Paul, 2019. "Development of rail transit network over multiple time periods," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 235-250.
    5. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Wang, David Z.W., 2021. "Optimizing the number of employment subcenters to decentralize a congested city," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    6. Li, Zhi-Chun & Wang, Ya-Dong, 2018. "Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 244-265.

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