IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v106y2017icp464-488.html
   My bibliography  Save this article

On joint railway and housing development: Housing-led versus railway-led schemes

Author

Listed:
  • Ng, Ka Fai
  • Lo, Hong K.

Abstract

This paper develops a time-dependent framework to analyze the revenues and costs of housing and railway developments over time in a Transit Oriented Development, explicitly capturing the housing and railway development phasing. A bi-level mathematical program is formulated, in which the upper level optimizes the housing supply and railway development over time based on the perspective of a joint housing and railway developer, versus that of consumers and that of government. At the lower level, a nested logit framework is formulated to model the combined bid-rent process, residents’ location and travel choices in each period. Under certain assumptions, this study derives analytically the lead-lag relationships between housing development and railway development, based on the initial housing and transport conditions, as well as the stakeholders’ perspectives. The development strategies are generally different among the stakeholders, whilst possible win-win situations, in terms of developer profitability and consumer surplus, are identified under certain low housing density conditions, leading to a social optimum. This study also conducts sensitivity analyses to extend the results to multiple time periods and heterogeneous income classes, revealing that, for profitability, the joint developer may introduce housing development phasing that segregates residents of different income classes.

Suggested Citation

  • Ng, Ka Fai & Lo, Hong K., 2017. "On joint railway and housing development: Housing-led versus railway-led schemes," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 464-488.
    • Handle: RePEc:eee:transb:v:106:y:2017:i:c:p:464-488
    DOI: 10.1016/j.trb.2017.06.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261517300103
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.trb.2017.06.003?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ng, Ka Fai & Lo, Hong K., 2015. "Optimal housing supply in a bid-rent equilibrium framework," Transportation Research Part B: Methodological, Elsevier, vol. 74(C), pages 62-78.
    2. Eliasson, Jonas & Mattsson, Lars-Göran, 2000. "A model for integrated analysis of household location and travel choices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(5), pages 375-394, June.
    3. Alex Anas & Yu Liu, 2007. "A Regional Economy, Land Use, And Transportation Model (Relu‐Tran©): Formulation, Algorithm Design, And Testing," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 415-455, August.
    4. Li, Zhi-Chun & Guo, Qian-Wen & Lam, William H.K. & Wong, S.C., 2015. "Transit technology investment and selection under urban population volatility: A real option perspective," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 318-340.
    5. Lo, Hong K. & Szeto, W.Y., 2009. "Time-dependent transport network design under cost-recovery," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 142-158, January.
    6. Jiang Qian Ying, 2015. "Optimization for Multiclass Residential Location Models with Congestible Transportation Networks," Transportation Science, INFORMS, vol. 49(3), pages 452-471, August.
    7. Ellickson, Bryan, 1981. "An alternative test of the hedonic theory of housing markets," Journal of Urban Economics, Elsevier, vol. 9(1), pages 56-79, January.
    8. Robert Cervero & Jin Murakami, 2009. "Rail and Property Development in Hong Kong: Experiences and Extensions," Urban Studies, Urban Studies Journal Limited, vol. 46(10), pages 2019-2043, September.
    9. Li, Zhi-Chun & Chen, Ya-Juan & Wang, Ya-Dong & Lam, William H.K. & Wong, S.C., 2013. "Optimal density of radial major roads in a two-dimensional monocentric city with endogenous residential distribution and housing prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 927-937.
    10. 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..
    11. David Levinson, 2008. "Density and dispersion: the co-development of land use and rail in London," Journal of Economic Geography, Oxford University Press, vol. 8(1), pages 55-77, January.
    12. Lo, Hong K. & Chen, Anthony, 2000. "Traffic equilibrium problem with route-specific costs: formulation and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 34(6), pages 493-513, August.
    13. Jen‐Jia Lin & Chia‐Nung Li, 2008. "A grey programming model for regional transit‐oriented development planning," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 119-138, March.
    14. Hong K. Lo & W. Y. Szeto, 2004. "Planning transport network improvements over time," Chapters, in: Der-Horng Lee (ed.), Urban and Regional Transportation Modeling, chapter 9, Edward Elgar Publishing.
    15. MA, Xiaosu & LO, Hong K., 2013. "On joint railway and housing development strategy," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 451-467.
    16. Boyce, David & Mattsson, Lars-Göran, 1999. "Modeling residential location choice in relation to housing location and road tolls on congested urban highway networks," Transportation Research Part B: Methodological, Elsevier, vol. 33(8), pages 581-591, November.
    17. Peng, Ya-Ting & Li, Zhi-Chun & Choi, Keechoo, 2017. "Transit-oriented development in an urban rail transportation corridor," Transportation Research Part B: Methodological, Elsevier, vol. 103(C), pages 269-290.
    18. Ma, Xiaosu & Lo, Hong K., 2012. "Modeling transport management and land use over time," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 687-709.
    19. Olaru, Doina & Smith, Brett & Taplin, John H.E., 2011. "Residential location and transit-oriented development in a new rail corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(3), pages 219-237, March.
    20. Chang, Justin Sueun & Mackett, Roger Laurence, 2006. "A bi-level model of the relationship between transport and residential location," Transportation Research Part B: Methodological, Elsevier, vol. 40(2), pages 123-146, February.
    21. Szeto, W.Y. & Lo, Hong K., 2006. "Transportation network improvement and tolling strategies: The issue of intergeneration equity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(3), pages 227-243, March.
    22. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C. & Choi, Keechoo, 2012. "Modeling the effects of integrated rail and property development on the design of rail line services in a linear monocentric city," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 710-728.
    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. Huai, Yue & Lo, Hong K. & Ng, Ka Fai, 2021. "Monocentric versus polycentric urban structure: Case study in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 99-118.
    2. Huang, Hai-Jun & Xia, Tian & Tian, Qiong & Liu, Tian-Liang & Wang, Chenlan & Li, Daqing, 2020. "Transportation issues in developing China's urban agglomerations," Transport Policy, Elsevier, vol. 85(C), pages 1-22.
    3. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Liu, Ronghui, 2018. "Mode choice and railway subsidy in a congested monocentric city with endogenous population distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 413-433.
    4. Peng, Ya-Ting & Li, Zhi-Chun & Schonfeld, Paul, 2019. "Development of rail transit network over multiple time periods," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 235-250.
    5. Wang, Zhaohua & Ma, Junhua & Zhang, Bin & Yang, Yuantao & Wang, Bo & Zhao, Wenhui, 2023. "Does high speed railway alleviate housing vacancy rates? Evidence from smart meter data of household electricity consumption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    6. Li, Zhi-Chun & Cheng, Li & de Palma, André, 2024. "Ring road investment, cordon tolling, and urban spatial structure," Transportation Research Part B: Methodological, Elsevier, vol. 182(C).
    7. Yu, De-Ping & Li, Zhi-Chun & Liu, Baoli & Nguyen-Phuoc, Duy Quy, 2023. "Transit-oriented development and floor area ratio regulation in a transportation corridor: Formulation and a case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    8. Han, Dan & Wu, Shuping, 2023. "The capitalization and urbanization effect of subway stations: A network centrality perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    9. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Wang, David Z.W., 2021. "Optimizing the number of employment subcenters to decentralize a congested city," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    10. Li, Zhi-Chun & Wang, Ya-Dong, 2018. "Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 244-265.

    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. Ng, Ka Fai & Lo, Hong K., 2015. "Optimal housing supply in a bid-rent equilibrium framework," Transportation Research Part B: Methodological, Elsevier, vol. 74(C), pages 62-78.
    2. Huai, Yue & Lo, Hong K. & Ng, Ka Fai, 2021. "Monocentric versus polycentric urban structure: Case study in Hong Kong," Transportation Research Part A: Policy and Practice, Elsevier, vol. 151(C), pages 99-118.
    3. Yu, De-Ping & Li, Zhi-Chun & Liu, Baoli & Nguyen-Phuoc, Duy Quy, 2023. "Transit-oriented development and floor area ratio regulation in a transportation corridor: Formulation and a case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    4. Peng, Ya-Ting & Li, Zhi-Chun & Choi, Keechoo, 2017. "Transit-oriented development in an urban rail transportation corridor," Transportation Research Part B: Methodological, Elsevier, vol. 103(C), pages 269-290.
    5. Ma, Xiaosu & Lo, Hong K., 2012. "Modeling transport management and land use over time," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 687-709.
    6. Huang, Hai-Jun & Xia, Tian & Tian, Qiong & Liu, Tian-Liang & Wang, Chenlan & Li, Daqing, 2020. "Transportation issues in developing China's urban agglomerations," Transport Policy, Elsevier, vol. 85(C), pages 1-22.
    7. Li, Tongfei & Sun, Huijun & Wu, Jianjun & Ge, Ying-en, 2017. "Optimal toll of new highway in the equilibrium framework of heterogeneous households' residential location choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 105(C), pages 123-137.
    8. Li, Zhi-Chun & Wang, Ya-Dong, 2018. "Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 244-265.
    9. Shumin Zhou & Huijun Sun & Tianchao Guan & Tongfei Li, 2018. "Equilibrium Model of Housing Choice for Heterogeneous Households under Public Rental Housing Policy," Sustainability, MDPI, vol. 10(12), pages 1-21, November.
    10. MA, Xiaosu & LO, Hong K., 2013. "On joint railway and housing development strategy," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 451-467.
    11. 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.
    12. Sang, Jinyan & Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2019. "Design of build-operate-transfer contract for integrated rail and property development with uncertainty in future urban population," Transportation Research Part B: Methodological, Elsevier, vol. 130(C), pages 36-66.
    13. Xu, Shu-Xian & Liu, Tian-Liang & Huang, Hai-Jun & Liu, Ronghui, 2018. "Mode choice and railway subsidy in a congested monocentric city with endogenous population distribution," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 413-433.
    14. Peng, Ya-Ting & Li, Zhi-Chun & Schonfeld, Paul, 2019. "Development of rail transit network over multiple time periods," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 235-250.
    15. Teulings, Coen & Ossokina, Ioulia V. & de Groot, Henri L.F., 2014. "Welfare Benefits of Agglomeration and Worker Heterogeneity," IZA Discussion Papers 8382, Institute of Labor Economics (IZA).
    16. De Groot, Henri L.F. & Ossokina, Ioulia V. & Teulings, Coen N, 2014. "Welfare Benefits of Agglomeration and Worker Heterogeneity," CEPR Discussion Papers 10216, C.E.P.R. Discussion Papers.
    17. Tomás Cox & Ricardo Hurtubia, 2021. "Latent Segmentation of Urban Space through Residential Location Choice," Networks and Spatial Economics, Springer, vol. 21(1), pages 199-228, March.
    18. L. M. Briceño-Arias & F. Martínez, 2018. "Short-Term Land use Planning and Optimal Subsidies," Networks and Spatial Economics, Springer, vol. 18(4), pages 973-997, December.
    19. Farahani, Reza Zanjirani & Miandoabchi, Elnaz & Szeto, W.Y. & Rashidi, Hannaneh, 2013. "A review of urban transportation network design problems," European Journal of Operational Research, Elsevier, vol. 229(2), pages 281-302.
    20. Teulings, Coen N. & Ossokina, Ioulia V. & de Groot, Henri L.F., 2018. "Land use, worker heterogeneity and welfare benefits of public goods," Journal of Urban Economics, Elsevier, vol. 103(C), pages 67-82.

    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:transb:v:106:y:2017:i:c:p:464-488. 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: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    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.