IDEAS home Printed from https://ideas.repec.org/a/eee/jotrge/v111y2023ics0966692323001217.html
   My bibliography  Save this article

Expected transport accessibility improvement and house prices: Evidence from the construction of an undersea road tunnel system

Author

Listed:
  • Mikula, Štěpán
  • Molnár, Peter

Abstract

This paper studies the impact of expected transport accessibility improvement on house prices. We identify the effect exploiting a quasi-natural experiment created by the approval and construction of the Ryfast tunnel system in Rogaland, Norway, which shortened the traveling time to the affected municipality from 62 to 24 min. Estimates of a repeated sales model in a difference-in-differences framework show that the expectation of improvement in transport accessibility connected with the construction of the tunnel system led to an increase in house prices by 12.8% on average. That effect grew as the opening of the tunnel drew closer and was driven by less valuable houses.

Suggested Citation

  • Mikula, Štěpán & Molnár, Peter, 2023. "Expected transport accessibility improvement and house prices: Evidence from the construction of an undersea road tunnel system," Journal of Transport Geography, Elsevier, vol. 111(C).
    • Handle: RePEc:eee:jotrge:v:111:y:2023:i:c:s0966692323001217
    DOI: 10.1016/j.jtrangeo.2023.103649
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0966692323001217
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jtrangeo.2023.103649?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bråthen, Svein & Hervik, Arild, 1997. "Strait crossings and economic development : Developing economic impact assessment by means of ex post analyses," Transport Policy, Elsevier, vol. 4(4), pages 193-200, October.
    2. Andersen, Stig Nyland & Díez Gutiérrez, María & Nilsen, Øyvind Lervik & Tørset, Trude, 2018. "The impact of fixed links on population development, housing and the labour market: The case of Norway," Journal of Transport Geography, Elsevier, vol. 68(C), pages 215-223.
    3. Knowles, Richard D. & Matthiessen, Christian W., 2009. "Barrier effects of international borders on fixed link traffic generation: the case of Øresundsbron," Journal of Transport Geography, Elsevier, vol. 17(3), pages 155-165.
    4. Helen XH Bao & Johan P Larsson & Vivien Wong, 2021. "Light at the end of the tunnel:The impacts of expected major transport improvements on residential property prices," Urban Studies, Urban Studies Journal Limited, vol. 58(14), pages 2971-2990, November.
    5. Ghani, Ejaz & Goswami, Arti Grover & Kerr, William R., 2013. "Highway to success in India : the impact of the golden quadrilateral project for the location and performance of manufacturing," Policy Research Working Paper Series 6320, The World Bank.
    6. He, Sylvia Y., 2020. "Regional impact of rail network accessibility on residential property price: Modelling spatial heterogeneous capitalisation effects in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 244-263.
    7. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
    8. Liu, Xueli & Jiang, Chunxia & Wang, Feng & Yao, Shujie, 2021. "The impact of high-speed railway on urban housing prices in China: A network accessibility perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 152(C), pages 84-99.
    9. Grimes, Arthur & Young, Chris, 2013. "Spatial effects of urban rail upgrades," Journal of Transport Geography, Elsevier, vol. 30(C), pages 1-6.
    10. Dubé, Jean & Thériault, Marius & Des Rosiers, François, 2013. "Commuter rail accessibility and house values: The case of the Montreal South Shore, Canada, 1992–2009," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 49-66.
    11. Sander Hoogendoorn & Joost van Gemeren & Paul Verstraten & Kees Folmer, 2019. "House prices and accessibility: evidence from a quasi-experiment in transport infrastructure," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 57-87.
    12. Jen-Jia Lin & Chi-Hau Hwang, 2004. "Analysis of property prices before and after the opening of the Taipei subway system," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(4), pages 687-704, December.
    13. Ghebreegziabiher Debrezion & Eric Pels & Piet Rietveld, 2007. "The Impact of Railway Stations on Residential and Commercial Property Value: A Meta-analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 35(2), pages 161-180, August.
    14. Andersson, David Emanuel & Shyr, Oliver F. & Fu, Johnson, 2010. "Does high-speed rail accessibility influence residential property prices? Hedonic estimates from southern Taiwan," Journal of Transport Geography, Elsevier, vol. 18(1), pages 166-174.
    15. Mohammad, Sara I. & Graham, Daniel J. & Melo, Patricia C. & Anderson, Richard J., 2013. "A meta-analysis of the impact of rail projects on land and property values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 158-170.
    16. Rokicki, Bartlomiej & Stępniak, Marcin, 2018. "Major transport infrastructure investment and regional economic development – An accessibility-based approach," Journal of Transport Geography, Elsevier, vol. 72(C), pages 36-49.
    17. Camins-Esakov, Jacob & Vandegrift, Donald, 2018. "Impact of a light rail extension on residential property values," Research in Transportation Economics, Elsevier, vol. 67(C), pages 11-18.
    18. Billings, Stephen B., 2011. "Estimating the value of a new transit option," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 525-536.
    19. Banister, David, 2011. "The trilogy of distance, speed and time," Journal of Transport Geography, Elsevier, vol. 19(4), pages 950-959.
    20. Sun, Weizeng & Zheng, Siqi & Wang, Rui, 2015. "The capitalization of subway access in home value: A repeat-rentals model with supply constraints in Beijing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 104-115.
    Full references (including those not matched with items on IDEAS)

    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. Schmidt, Adam & Bardaka, Eleni & Thill, Jean-Claude, 2022. "Causal, spatiotemporal impacts of transit investments: Exploring spatial heterogeneity from announcement through long-run operation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 151-169.
    2. Štěpán Mikula & Peter Molnár, 2022. "Expected Transport Accessibility Improvement and House Prices: Evidence from the Construction of the World’s Longest Undersea Road Tunnel," MUNI ECON Working Papers 2022-05, Masaryk University, revised Feb 2023.
    3. Dubé, Jean & Andrianary, Eugénie & Assad-Déry, François & Poupart, Janie & Simard, Justine, 2018. "Exploring difference in value uplift resulting from new bus rapid transit routes within a medium size metropolitan area," Journal of Transport Geography, Elsevier, vol. 72(C), pages 258-269.
    4. Diao, Mi & Leonard, Delon & Sing, Tien Foo, 2017. "Spatial-difference-in-differences models for impact of new mass rapid transit line on private housing values," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 64-77.
    5. Rennert, Lindiwe, 2022. "A meta-analysis of the impact of rail stations on property values: Applying a transit planning lens," Transportation Research Part A: Policy and Practice, Elsevier, vol. 163(C), pages 165-180.
    6. Wagner, Gary A. & Komarek, Timothy & Martin, Julia, 2017. "Is the light rail “Tide” lifting property values? Evidence from Hampton Roads, VA," Regional Science and Urban Economics, Elsevier, vol. 65(C), pages 25-37.
    7. Zhengyi Zhou & Hong Chen & Lu Han & Anming Zhang, 2021. "The Effect of a Subway on House Prices: Evidence from Shanghai," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(S1), pages 199-234, March.
    8. John Murray & Eleni Bardaka, 2022. "Evaluating the spatial and temporal distribution of beltway effects on housing prices using difference-in-differences methods," Transportation, Springer, vol. 49(6), pages 1963-1998, December.
    9. Bardaka, Eleni & Delgado, Michael S. & Florax, Raymond J.G.M., 2019. "A spatial multiple treatment/multiple outcome difference-in-differences model with an application to urban rail infrastructure and gentrification," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 325-345.
    10. Lee, Jae Kwang, 2022. "New rail transit projects and land values: The difference in the impact of rail transit investment on different land types, values and locations," Land Use Policy, Elsevier, vol. 112(C).
    11. 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.
    12. 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.
    13. Zhong, Haotian & Li, Wei, 2016. "Rail transit investment and property values: An old tale retold," Transport Policy, Elsevier, vol. 51(C), pages 33-48.
    14. Huang, Zhonghua & Du, Xuejun, 2021. "How does high-speed rail affect land value? Evidence from China," Land Use Policy, Elsevier, vol. 101(C).
    15. Mitra, Suman K. & Saphores, Jean-Daniel M., 2016. "The value of transportation accessibility in a least developed country city – The case of Rajshahi City, Bangladesh," Transportation Research Part A: Policy and Practice, Elsevier, vol. 89(C), pages 184-200.
    16. AlQuhtani, Saad & Anjomani, Ardeshir, 2019. "Do rail transit stations affect housing value changes? The Dallas Fort-Worth metropolitan area case and implications," Journal of Transport Geography, Elsevier, vol. 79(C), pages 1-1.
    17. Rémy Le Boennec & Julie Bulteau & Thierry Feuillet, 2022. "The role of commuter rail accessibility in the formation of residential land values: exploring spatial heterogeneity in peri-urban and remote areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 163-186, August.
    18. Zheng Chang & Mi Diao, 2022. "Inter-city transport infrastructure and intra-city housing markets: Estimating the redistribution effect of high-speed rail in Shenzhen, China," Urban Studies, Urban Studies Journal Limited, vol. 59(4), pages 870-889, March.
    19. Zheng, Siqi & Xu, Yangfei & Zhang, Xiaonan & Wang, Rui, 2016. "Transit development, consumer amenities and home values: Evidence from Beijing's subway neighborhoods," Journal of Housing Economics, Elsevier, vol. 33(C), pages 22-33.
    20. Seya, Hajime & Yoshida, Takahiro & Tsutsumi, Morito, 2016. "Ex-post identification of geographical extent of benefited area by a transportation project: Functional data analysis method," Journal of Transport Geography, Elsevier, vol. 55(C), pages 1-10.

    More about this item

    Keywords

    Transport accessibility; Expectations; House prices; Ryfast tunnel system construction; Norway;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • 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:eee:jotrge:v:111:y:2023:i:c:s0966692323001217. 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-transport-geography .

    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.