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The Effects of Railway Investments in a Polycentric City: A Comparison of Competitive and Segmented Land Markets

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  • Ghebreegziabiher Debrezion
  • Eric Pels
  • Piet Rietveld

Abstract

The paper analyzes the effect of railway investment on land prices and land use in a polycentric city under various regulatory regimes of land markets. The introduction of a fast mode of transport (train), accessible in discrete locations, leads to an increase in city size. The stations of the fast mode induce dense residential settlements in their vicinity. As a result, the average residential and commercial land rents increase in both competitive and segmented land-market situations, compared with the unimodal transport case. When rail investments serve only one particular centre, this leads to the growth of the advantaged centre at the expense of the other centre. An investment in the fast mode results in city growth and an increase in rent receipts. However, the effect of the investment for individual centres and their corresponding residential areas depends on the underlying land-market conditions. Restrictions on commercial land use lead to increases in commercial rents, but this is more than offset by the decrease in residential land rents.

Suggested Citation

  • Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2007. "The Effects of Railway Investments in a Polycentric City: A Comparison of Competitive and Segmented Land Markets," Environment and Planning A, , vol. 39(9), pages 2048-2067, September.
    • Handle: RePEc:sae:envira:v:39:y:2007:i:9:p:2048-2067
    DOI: 10.1068/a39180
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    References listed on IDEAS

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    1. Li, Zhi-Chun & Ma, Jia-Chun, 2021. "Investing in inter-city and/or intra-city rail lines? A general equilibrium analysis for a two-city system," Transport Policy, Elsevier, vol. 108(C), pages 59-82.
    2. Dröes, Martijn I. & Rietveld, Piet, 2015. "Rail-based public transport and urban spatial structure: The interplay between network design, congestion and urban form," Transportation Research Part B: Methodological, Elsevier, vol. 81(P2), pages 421-439.
    3. Martijn I. Dröes & Piet Rietveld†, 2014. "The Effect of Railway Travel on Urban Spatial Structure," Tinbergen Institute Discussion Papers 14-050/VIII, Tinbergen Institute.
    4. Eric Pels & Piet Rietveld, 2007. "Railway Station and Urban Dynamics," Environment and Planning A, , vol. 39(9), pages 2043-2047, September.

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