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Capitalization of BRT network expansions effects into prices of non-expansion areas

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  • Rodríguez, Daniel A.
  • Mojica, Carlos H.

Abstract

A before and after hedonic model is used to determine the property value impacts on properties already served by the transit system caused by extensions to Bogotá's bus rapid transit system. Asking prices of residential properties belonging to an intervention area (NÂ =Â 1407 before, 1570 after) or a control area (NÂ =Â 267 before, 732 after) and offered for sale between 2001 and 2006 are used to determine capitalization of the enhanced regional access provided by the extension. Properties offered during the year the extension was inaugurated and in subsequent years have asking prices that are between 13% and 14% higher than prices for properties in the control area, after adjusting for structural, neighborhood and regional accessibility characteristics of each property. Furthermore, the appreciation is similar for properties within 500Â m and properties between 500Â m and 1Â km of the BRT.

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  • Rodríguez, Daniel A. & Mojica, Carlos H., 2009. "Capitalization of BRT network expansions effects into prices of non-expansion areas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 560-571, June.
  • Handle: RePEc:eee:transa:v:43:y:2009:i:5:p:560-571
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    Cited by:

    1. Rodriguez, Daniel A. & Vergel-Tovar, Erik & Camargo, William F., 2016. "Land development impacts of BRT in a sample of stops in Quito and Bogotá," Transport Policy, Elsevier, vol. 51(C), pages 4-14.
    2. Dubé, Jean & Rosiers, François Des & Thériault, Marius & Dib, Patricia, 2011. "Economic impact of a supply change in mass transit in urban areas: A Canadian example," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 46-62, January.
    3. repec:eee:retrec:v:60:y:2016:i:c:p:54-61 is not listed on IDEAS
    4. 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.
    5. Deng, Taotao & Nelson, John D., 2013. "Bus Rapid Transit implementation in Beijing: An evaluation of performance and impacts," Research in Transportation Economics, Elsevier, vol. 39(1), pages 108-113.
    6. Delmelle, Elizabeth Cahill & Casas, Irene, 2012. "Evaluating the spatial equity of bus rapid transit-based accessibility patterns in a developing country: The case of Cali, Colombia," Transport Policy, Elsevier, vol. 20(C), pages 36-46.
    7. Dubé, Jean & Legros, Diègo & Thériault, Marius & Des Rosiers, François, 2014. "A spatial Difference-in-Differences estimator to evaluate the effect of change in public mass transit systems on house prices," Transportation Research Part B: Methodological, Elsevier, vol. 64(C), pages 24-40.
    8. Luca D’Acci, 2014. "Monetary, Subjective and Quantitative Approaches to Assess Urban Quality of Life and Pleasantness in Cities (Hedonic Price, Willingness-to-Pay, Positional Value, Life Satisfaction, Isobenefit Lines)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(2), pages 531-559, January.
    9. McIntosh, James & Trubka, Roman & Newman, Peter, 2014. "Can value capture work in a car dependent city? Willingness to pay for transit access in Perth, Western Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 67(C), pages 320-339.
    10. Mathur, Shishir & Ferrell, Christopher, 2013. "Measuring the impact of sub-urban transit-oriented developments on single-family home values," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 42-55.
    11. Mulley, Corinne & Tsai, Chi-Hong (Patrick), 2016. "When and how much does new transport infrastructure add to property values? Evidence from the bus rapid transit system in Sydney, Australia," Transport Policy, Elsevier, vol. 51(C), pages 15-23.
    12. Papon, Francis & Nguyen-Luong, Dany & Boucq, Elise, 2015. "Should any new light rail line provide real estate gains, or not? The case of the T3 line in Paris," Research in Transportation Economics, Elsevier, vol. 49(C), pages 43-54.
    13. Thomas de Graaff & Ghebreegziabiher Debrezion & Piet Rietveld, 2012. "The impact of accessibility on house prices: an application to large urban planning and infrastructure projects in the Netherlands," Chapters,in: Accessibility Analysis and Transport Planning, chapter 9, pages 154-172 Edward Elgar Publishing.
    14. Cervero, Robert & Dai, Danielle, 2014. "BRT TOD: Leveraging transit oriented development with bus rapid transit investments," Transport Policy, Elsevier, vol. 36(C), pages 127-138.

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