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Modeling the effects of integrated rail and property development on the design of rail line services in a linear monocentric city

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  • Li, Zhi-Chun
  • Lam, William H.K.
  • Wong, S.C.
  • Choi, Keechoo

Abstract

This paper proposes a new model for investigating the effects of integrated rail and property development on the design of rail line services in a linear monocentric city, in which the property development rights at railway station areas are conferred to a private rail operator. The proposed model allows an explicit consideration of the interaction between two types of agents in the economy: (1) a private rail operator who seeks to optimize rail service variables—rail line length, number and spacing of stations, headway and fare—to maximize its own net profit, which is the sum of revenues from passenger fare-box and property development; and (2) households who choose the residential locations that maximize their own utilities subject to a budget constraint. The solution properties of the proposed model are analyzed, and a heuristic solution algorithm is presented. An illustrative example is used to show the application of the proposed model. The findings show that integrated rail and property development can change a city’s land-use pattern and housing market (in terms of housing density, space, and price), and its economic viability is closely related to household income level and residential density of the city.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:transb:v:46:y:2012:i:6:p:710-728 DOI: 10.1016/j.trb.2012.01.004
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. repec:eee:transb:v:106:y:2017:i:c:p:464-488 is not listed on IDEAS
    3. 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.
    4. 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.
    5. repec:eee:transa:v:105:y:2017:i:c:p:123-137 is not listed on IDEAS
    6. 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.
    7. 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.
    8. repec:eee:transb:v:103:y:2017:i:c:p:269-290 is not listed on IDEAS

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