IDEAS home Printed from https://ideas.repec.org/p/cpb/discus/146.html
   My bibliography  Save this paper

Geographical range of amenity benefits: Hedonic price analysis for railway stations

Author

Listed:
  • Ioulia Ossokina

Abstract

People want to live nearby consumption amenities as this saves time on commuting. This paper develops a residential location model in which the geographical range and the magnitude of amenity benefits as reflected in residential prices can ex post be assessed. People want to live nearby consumption amenities as this saves time on commuting. This paper develops a residential location model in which the geographical range and the magnitude of amenity benefits as reflected in residential prices can ex post be assessed. First we extend a standard residential location model with a non-essential consumption amenity. We show that the geographical range of amenity benefits can be determined as the minimal distance to the amenity beyond which residential rents are independent of the distance to the amenity. We next apply this insight in a hedonic analysis of the effect of proximity to a railway station on local housing prices in the wider metropolitan area of Amsterdam, the Netherlands. The geographical range of the railway stations is estimated to be 1.1 kilometer and the house price premium paid for station proximity is estimated to be 3 to 5 percent. We show furthermore that failing to account for the localized character of the amenity benefits can lead to a considerable under- or overestimation of the benefits.

Suggested Citation

  • Ioulia Ossokina, 2010. "Geographical range of amenity benefits: Hedonic price analysis for railway stations," CPB Discussion Paper 146, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:146
    as

    Download full text from publisher

    File URL: https://www.cpb.nl/sites/default/files/publicaties/download/geographical-range-amenity-benefits.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cheshire, Paul & Sheppard, Stephen, 2002. "The welfare economics of land use planning," Journal of Urban Economics, Elsevier, vol. 52(2), pages 242-269, September.
    2. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, January.
    3. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
    4. Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2006. "The Impact of Rail Transport on Real Estate Prices: An Empirical Analysis of the Dutch Housing Market," Tinbergen Institute Discussion Papers 06-031/3, Tinbergen Institute.
    5. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    6. Homans, Frances R. & Marshall, Elizabeth P., 2008. "Modeling Recreational Amenities in an Urban Setting: Location, Congestion, and Substitution Effects," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), pages 1-16.
    7. Jan Rouwendal & Willemijn Weijschede- v.d. Straaten, 2008. "The costs and benefits of providing open space in cities," CPB Discussion Paper 98, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    9. JunJie Wu, 2001. "Environmental Amenities and the Spatial Pattern of Urban Sprawl," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 691-697.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hans R.A. Koster & Jos N. van Ommeren & Piet Rietveld, 2010. "The Gains of Trains: The effect of station openings on house prices," Tinbergen Institute Discussion Papers 10-094/3, Tinbergen Institute, revised 12 Sep 2012.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wouter Vermeulen & Jan Rouwendal, 2008. "Urban Expansion or Clustered Deconcentration?," Tinbergen Institute Discussion Papers 08-043/3, Tinbergen Institute.
    2. Hans R.A. Koster & Jan Rouwendal, 2012. "The Impact Of Mixed Land Use On Residential Property Values," Journal of Regional Science, Wiley Blackwell, vol. 52(5), pages 733-761, December.
    3. Paul Cheshire, 2009. "Urban Containment, Housing Affordability and Price Stability - Irreconcilable Goals," SERC Policy Papers 004, Centre for Economic Performance, LSE.
    4. Niels Vermeer & Wouter Vermeulen, 2011. "External Benefits of Brownfield Redevelopment: An Applied Urban General Equilibrium Analysis," CPB Discussion Paper 178.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Gabriel M. Ahlfeldt & Nancy Holman, 2018. "Distinctively Different: A New Approach to Valuing Architectural Amenities," Economic Journal, Royal Economic Society, vol. 128(608), pages 1-33, February.
    6. Tan, Ronghui & He, Qingsong & Zhou, Kehao & Xie, Peng, 2019. "The effect of new metro stations on local land use and housing prices: The case of Wuhan, China," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    7. Cheshire, Paul, 2009. "Urban land markets and policy failures," LSE Research Online Documents on Economics 30837, London School of Economics and Political Science, LSE Library.
    8. Monique DANTAS & Frédéric GASCHET & Guillaume POUYANNE, 2010. "Regulatory zoning and coastal housing prices: a bayesian hedonic approach (In French)," Cahiers du GREThA (2007-2019) 2010-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    9. Vickerman, Roger, 2008. "Transit investment and economic development," Research in Transportation Economics, Elsevier, vol. 23(1), pages 107-115, January.
    10. Wouter Vermeulen & Jan Rouwendal, 2014. "On The Value Of Foregone Open Space In Sprawling Cities," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 61-69, January.
    11. Sebastian Brandt & Wolfgang Maennig, 2012. "The impact of rail access on condominium prices in Hamburg," Transportation, Springer, vol. 39(5), pages 997-1017, September.
    12. Aleksandra Jadach-Sepioło & Maciej Zathey, 2021. "Alternative between Revitalisation of City Centres and the Rising Costs of Extensive Land Use from a Polish Perspective," Land, MDPI, vol. 10(5), pages 1-31, May.
    13. Tao Li, 2020. "The Value of Access to Rail Transit in a Congested City: Evidence from Housing Prices in Beijing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(2), pages 556-598, June.
    14. Ibeas, Ángel & Cordera, Ruben & dell’Olio, Luigi & Coppola, Pierluigi & Dominguez, Alberto, 2012. "Modelling transport and real-estate values interactions in urban systems," Journal of Transport Geography, Elsevier, vol. 24(C), pages 370-382.
    15. Ducksu Seo & You Seok Chung & Youngsang Kwon, 2018. "Price Determinants of Affordable Apartments in Vietnam: Toward the Public–Private Partnerships for Sustainable Housing Development," Sustainability, MDPI, vol. 10(1), pages 1-17, January.
    16. Jean Cavailhès, 2005. "Le prix des attributs du logement," Économie et Statistique, Programme National Persée, vol. 381(1), pages 91-123.
    17. Verhetsel, Ann & Vanelslander, Thierry, 2010. "What location policy can bring to sustainable commuting: an empirical study in Brussels and Flanders, Belgium," Journal of Transport Geography, Elsevier, vol. 18(6), pages 691-701.
    18. Waights, Sevrin, 2018. "Does the law of one price hold for hedonic prices?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(15), pages 3299-3317.
    19. Cheshire, Paul, 2009. "Policies for mixed communities: faith-based displacement activity?," LSE Research Online Documents on Economics 30783, London School of Economics and Political Science, LSE Library.
    20. Ilir Nase & Jim Berry & Alastair Adair, 2016. "Impact of quality-led design on real estate value: a spatiotemporal analysis of city centre apartments," Journal of Property Research, Taylor & Francis Journals, vol. 33(4), pages 309-331, October.

    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpb:discus:146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cpbgvnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.