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Economic impact of a supply change in mass transit in urban areas: A Canadian example

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  • Dubé, Jean
  • Rosiers, François Des
  • Thériault, Marius
  • Dib, Patricia

Abstract

This paper aims at estimating the economic impact of a supply change in the bus transit service in a Canadian city of medium size. By using a quasi-experiment approach and a difference-in-differences (DID) estimator, it evaluates the impact of the introduction of a rapid bus transit (RBT) in Quebec City (Canada) through a spatio-temporal analysis of house price variations. The hedonic price model shows that the new service generates an increase in house price ranging from 6.9% to 2.9%, for those properties located close to the service corridor where the population is quite dense and where the service was offered initially. Using sales transaction data and municipal assessment records from 1997, the effect on price is translated into an economic impact for the whole region. The paper shows that the improvement in public transit supply generates, for Quebec City, a significant fiscal impact estimated to $6 M and a plus-value for properties owners close to $35 M over 12 years. Finally, the implications of this kind of analysis for urban planning and development are discussed.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transa:v:45:y:2011:i:1:p:46-62
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    Citations

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    Cited by:

    1. Forsey, David & Habib, Khandker Nurul & Miller, Eric J. & Shalaby, Amer, 2013. "Evaluating the impacts of a new transit system on commuting mode choice using a GEV model estimated to revealed preference data: A case study of the VIVA system in York Region, Ontario," Transportation Research Part A: Policy and Practice, Elsevier, pages 1-14.
    2. Stanley, John & Levinson, David, 2016. "Workshop 3 report: Sustainable funding sources and related cost benefit measurements," Research in Transportation Economics, Elsevier, vol. 59(C), pages 143-150.
    3. repec:eee:retrec:v:60:y:2016:i:c:p:54-61 is not listed on IDEAS
    4. 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, pages 24-40.
    5. 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, pages 42-55.
    6. 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, pages 15-23.
    7. repec:eee:regeco:v:67:y:2017:i:c:p:64-77 is not listed on IDEAS
    8. Eric N. AIDOO & William AGYEMANG & Jane E. MONKAH & Francis K. AFUKAAR, 2013. "pASSENGER’S SATISFACTION WITH PUBLIC BUS TRANSPORT SERVICES IN GHANA: A CASE STUDY OF KUMASI–ACCRA ROUTE," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, pages 33-44.
    9. 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, pages 49-66.

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