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Assessment of the real estate benefits due to accessibility gains brought by a transport project: the impacts of a light rail infrastructure improvement in the Hauts-de-Seine department

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  • Boucq, Elise
  • Papon, Francis

Abstract

This paper estimates the real estate benefits due to accessibility gains brought by a light rail infrastructure (the T2 tramway, in the Hauts-de-Seine). According to Urban Economics, the accessibility improvements resulting from a transport project will influence the residential location choices of households, and eventually the land rents at equilibrium will include the valuation of accessibility gains made by these households. Apart from accessibility, housing choice also depends on other characteristics: internal characteristics and external (environmental) characteristics. To take into account all these determinants, we have estimated a hedonic price function of residential properties econometrically. The data used are sales of residential dwellings in the Hauts-de-Seine department, population census and other sources, from 1993 to 2004, to take into account anticipation and learning effects. The hedonic price function obtained allows us to measure implicit or ‘hedonic’ prices of dwellings with a given group of characteristics, and isolates the pure effect of each characteristic on the price of a dwelling. The results show that the T2 tramway accessibility improvements are capitalized into the housing prices. To measure this capitalization into real estate, we calculate the prices of dwellings with and without these accessibility gains. For the whole department, we estimate a capitalization around 3%.

Suggested Citation

  • Boucq, Elise & Papon, Francis, 2008. "Assessment of the real estate benefits due to accessibility gains brought by a transport project: the impacts of a light rail infrastructure improvement in the Hauts-de-Seine department," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 40, pages 51-68.
    • Handle: RePEc:sot:journl:y:2008:i:40:p:51-68
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    1. McDonald, John F. & Osuji, Clifford I., 1995. "The effect of anticipated transportation improvement on residential land values," Regional Science and Urban Economics, Elsevier, vol. 25(3), pages 261-278, June.
    2. Nicolas Gravel & Alessandra Michelangeli & Alain Trannoy, 2006. "Measuring the social value of local public goods: an empirical analysis within Paris metropolitan area," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1945-1961.
    3. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
    4. P. C. Cheshire & E. S. Mills (ed.), 1999. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 3, number 3.
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    1. LE BOENNEC, Rémy & SARI, Florent, 2015. "Nouvelles centralités, choix modal et politiques de déplacements : le cas nantais," MPRA Paper 109261, University Library of Munich, Germany.
    2. Angela S. Bergantino & Francesco Porcelli, 2013. "Housing market prices: capitalisation of efficiency in local public service provision. An application with data on Italian urban transport related expenditures," SERIES 0047, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Aug 2013.
    3. Chinmoy Ghosh & Venkatesh Panchapagesan & Madalasa Venkataraman, 2024. "On the Impact of Infrastructure Improvement on Real Estate Property Values: Evidence from a Quasi-natural Experiment in an Emerging Market," The Journal of Real Estate Finance and Economics, Springer, vol. 68(1), pages 103-137, January.
    4. Dubé, Jean & Legros, Diègo & Devaux, Nicolas, 2018. "From bus to tramway: Is there an economic impact of substituting a rapid mass transit system? An empirical investigation accounting for anticipation effect," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 73-87.
    5. Rémy Le Boennec & Florent Sari, 2015. "Subcenters, mode choice and transport policies: evidence form Nantes [Nouvelles centralités, choix modal et politiques de déplacements : le cas nantais]," Post-Print hal-01657242, HAL.
    6. Rémy Le Boennec & Florent Sari, 2015. "Nouvelles centralités, choix modal et politiques de déplacements : le cas nantais," Post-Print hal-01657128, HAL.
    7. Rémy Le Boennec, 2014. "Nouvelles centralités, choix modal et politiques de déplacements " 2.0 " : Le cas Nantais," Working Papers hal-00958700, HAL.
    8. Julie Bulteau & Thierry Feuillet & Rémy Le Boennec, 2018. "Spatial Heterogeneity of Sustainable Transportation Offer Values: A Comparative Analysis of Nantes Urban and Periurban/Rural Areas (France)," Post-Print halshs-01706911, HAL.

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