IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v176y2026ics0967070x25004706.html

Can public investment in transport influence densification and land use? Evidence from the tramway of Dijon (France)

Author

Listed:
  • Dubé, Jean
  • Le Gallo, Julie
  • Champagne, Marie-Pier
  • Hilal, Mohamed
  • Legros, Diègo

Abstract

Investment in public transport offers alternatives to reduce car dependency as well as many negative externalities associated with solo car usage. Yet, to be fully effective, public transport infrastructure must be able to facilitate economic activities and households’ concentration. By increasing building density around stations and corridors, transport land-use feedback cycle can be engaged. The paper aims to evaluate the existence and extent of the causal relationship between public investment and densification, leveraging the implementation of a tramway service in the metropole of Dijon (France). The analysis decomposes the impact by direction as well as by the distance to corridor and city center. The results suggest that investment in public transport systems can significantly affect population and/or employment densification patterns, but that success is largely linked to the political willingness to stimulate densification through facilitating private investment.

Suggested Citation

  • Dubé, Jean & Le Gallo, Julie & Champagne, Marie-Pier & Hilal, Mohamed & Legros, Diègo, 2026. "Can public investment in transport influence densification and land use? Evidence from the tramway of Dijon (France)," Transport Policy, Elsevier, vol. 176(C).
  • Handle: RePEc:eee:trapol:v:176:y:2026:i:c:s0967070x25004706
    DOI: 10.1016/j.tranpol.2025.103927
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X25004706
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.tranpol.2025.103927?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 look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mark R. Stevens, 2017. "Does Compact Development Make People Drive Less?," Journal of the American Planning Association, Taylor & Francis Journals, vol. 83(1), pages 7-18, January.
    2. Dubé, Jean & Le Gallo, Julie & Des Rosiers, François & Legros, Diègo & Champagne, Marie-Pier, 2024. "An integrated causal framework to evaluate uplift value with an example on change in public transport supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    3. Damian Clarke & Kathya Tapia-Schythe, 2021. "Implementing the panel event study," Stata Journal, StataCorp LP, vol. 21(4), pages 853-884, December.
    4. Reid Ewing & Robert Cervero, 2010. "Travel and the Built Environment," Journal of the American Planning Association, Taylor & Francis Journals, vol. 76(3), pages 265-294.
    5. Cervero, Robert & Day, Jennifer, 2008. "Suburbanization and transit-oriented development in China," Transport Policy, Elsevier, vol. 15(5), pages 315-323, September.
    6. Champagne, Marie-Pier & Dubé, Jean & Barla, Philippe, 2022. "Build it and they will come: How does a new public transit station influence building construction?," Journal of Transport Geography, Elsevier, vol. 100(C).
    7. 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.
    8. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    9. Mouratidis, Kostas & Ettema, Dick & Næss, Petter, 2019. "Urban form, travel behavior, and travel satisfaction," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 306-320.
    10. Marlon Boarnet, 2011. "A Broader Context for Land Use and Travel Behavior, and a Research Agenda," Journal of the American Planning Association, Taylor & Francis Journals, vol. 77(3), pages 197-213.
    11. Bae, Chang-Hee Christine & Jun, Myung-Jin & Park, Hyeon, 2003. "The impact of Seoul's subway Line 5 on residential property values," Transport Policy, Elsevier, vol. 10(2), pages 85-94, April.
    12. Daniel P. McMillen & John McDonald, 2004. "Reaction of House Prices to a New Rapid Transit Line: Chicago's Midway Line, 1983–1999," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(3), pages 463-486, September.
    13. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    14. 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.
    15. Cervero, Robert & Duncan, Michael, 2008. "Residential Self Selection and Rail Commuting: A Nested Logit Analysis," University of California Transportation Center, Working Papers qt72p9n6qt, University of California Transportation Center.
    16. Lee, Yongsung & Guhathakurta, Subhrajit, 2018. "An analysis of the effects of suburban densification on vehicle use for shopping: Do existing residents respond to land-use changes in the same way as recent movers?," Journal of Transport Geography, Elsevier, vol. 68(C), pages 193-204.
    17. Jean Dubé & Charles-David Babin & Jean-Christophe Dubé & Hemza Lekkat & Alexandre Potvin & Olivier Ringue, 2017. "What comes first, residential or commercial development? Measuring the causal links for a Canadian city over a century," Letters in Spatial and Resource Sciences, Springer, vol. 10(1), pages 57-74, March.
    18. Aleix Bassolas & Hugo Barbosa-Filho & Brian Dickinson & Xerxes Dotiwalla & Paul Eastham & Riccardo Gallotti & Gourab Ghoshal & Bryant Gipson & Surendra A. Hazarie & Henry Kautz & Onur Kucuktunc & Alli, 2019. "Hierarchical organization of urban mobility and its connection with city livability," Nature Communications, Nature, vol. 10(1), pages 1-10, December.
    19. Ashesh Rambachan & Jonathan Roth, 2023. "A More Credible Approach to Parallel Trends," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(5), pages 2555-2591.
    20. 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.
    21. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    22. Bothe, Kristian & Hansen, Høgni Kalsø & Winther, Lars, 2018. "Spatial restructuring and uneven intra-urban employment growth in metro- and non-metro-served areas in Copenhagen," Journal of Transport Geography, Elsevier, vol. 70(C), pages 21-30.
    23. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    24. Gilles Duranton & Matthew A. Turner, 2011. "The Fundamental Law of Road Congestion: Evidence from US Cities," American Economic Review, American Economic Association, vol. 101(6), pages 2616-2652, October.
    25. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    26. Damian Clarke & Kathya Tapia-Schythe, 2021. "Implementing the panel event study," Stata Journal, StataCorp LLC, vol. 21(4), pages 853-884, December.
    27. John Antonakis & Samuel Bendahan & Philippe Jacquart & Rafael Lalive, 2010. "On making causal claims : A review and recommendations," Post-Print hal-02313119, HAL.
    28. 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.
    29. Christopher D. Higgins & Pavlos S. Kanaroglou, 2016. "Forty years of modelling rapid transit’s land value uplift in North America: moving beyond the tip of the iceberg," Transport Reviews, Taylor & Francis Journals, vol. 36(5), pages 610-634, September.
    30. 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.
    31. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    32. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    33. Moretti, Enrico, 2004. "Human capital externalities in cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 51, pages 2243-2291, Elsevier.
    34. Banister, David & Thurstain-Goodwin, Mark, 2011. "Quantification of the non-transport benefits resulting from rail investment," Journal of Transport Geography, Elsevier, vol. 19(2), pages 212-223.
    35. Dubé, Jean & Dieng, Ousmane & Lévesque, Mathieu & Racine, Antoine & Roberge, Olivier & Trapé, Thibault, 2023. "How public policies and other events can shape spatial distribution of local activities over time? An investigation based on spatial micro-data," Land Use Policy, Elsevier, vol. 125(C).
    36. Pikora, Terri & Giles-Corti, Billie & Bull, Fiona & Jamrozik, Konrad & Donovan, Rob, 2003. "Developing a framework for assessment of the environmental determinants of walking and cycling," Social Science & Medicine, Elsevier, vol. 56(8), pages 1693-1703, April.
    37. Mark R. Stevens, 2017. "Response to Commentaries on “Does Compact Development Make People Drive Less?”," Journal of the American Planning Association, Taylor & Francis Journals, vol. 83(2), pages 151-158, April.
    38. Deb Niemeier & Song Bai & Susan L. Handy, 2011. "The impact of residential growth patterns on vehicle travel and pollutant emissions," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 4(3), pages 65-80.
    39. Dubé, Jean & Desaulniers, Sarah & Bédard, Louis-Philippe & Binette, Antoine & Leblanc, Emmanuelle, 2018. "Urban residential reconversion through demolition: A land use model based on administrative spatial micro-data," Land Use Policy, Elsevier, vol. 76(C), pages 686-696.
    40. Ibraeva, Anna & Correia, Gonçalo Homem de Almeida & Silva, Cecília & Antunes, António Pais, 2020. "Transit-oriented development: A review of research achievements and challenges," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 110-130.
    41. Gabriel Ahlfeldt & Elisabetta Pietrostefani & Abel Schumann & Tadashi Matsumoto, 2018. "Demystifying compact urban growth: Evidence from 300 studies from across the world," OECD Regional Development Working Papers 2018/03, OECD Publishing.
    42. Melissa S. Kearney & Phillip B. Levine, 2015. "Media Influences on Social Outcomes: The Impact of MTV's 16 and Pregnant on Teen Childbearing," American Economic Review, American Economic Association, vol. 105(12), pages 3597-3632, December.
    43. Melia, Steve & Chatterjee, Kiron & Stokes, Gordon, 2018. "Is the urbanisation of young adults reducing their driving?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 444-456.
    44. Melia, Steve & Parkhurst, Graham & Barton, Hugh, 2011. "The paradox of intensification," Transport Policy, Elsevier, vol. 18(1), pages 46-52, January.
    45. 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.
    46. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    47. Aspa Gospodini, 2005. "Urban development, redevelopment and regeneration encouraged by transport infrastructure projects: The case study of 12 European cities," European Planning Studies, Taylor & Francis Journals, vol. 13(7), pages 1083-1111, October.
    48. Brownstone, David & Golob, Thomas F., 2009. "The impact of residential density on vehicle usage and energy consumption," Journal of Urban Economics, Elsevier, vol. 65(1), pages 91-98, January.
    49. Banister, David, 2008. "The sustainable mobility paradigm," Transport Policy, Elsevier, vol. 15(2), pages 73-80, March.
    50. Claudio A. Agostini & Gastón A. Palmucci, 2008. "The Anticipated Capitalisation Effect of a New Metro Line on Housing Prices," Fiscal Studies, Institute for Fiscal Studies, vol. 29(2), pages 233-256, June.
    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. Dubé, Jean & Le Gallo, Julie & Des Rosiers, François & Legros, Diègo & Champagne, Marie-Pier, 2024. "An integrated causal framework to evaluate uplift value with an example on change in public transport supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    2. 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.
    3. Champagne, Marie-Pier & Dubé, Jean & Barla, Philippe, 2022. "Build it and they will come: How does a new public transit station influence building construction?," Journal of Transport Geography, Elsevier, vol. 100(C).
    4. 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.
    5. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2024. "Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists," IFRO Working Paper 2024/03, University of Copenhagen, Department of Food and Resource Economics.
    6. Higgins, Christopher D. & Arku, Robert N. & Farber, Steven & Miller, Eric J., 2024. "Modelling changes in accessibility and property values associated with the King Street Transit Priority Corridor project in Toronto," Transportation Research Part A: Policy and Practice, Elsevier, vol. 190(C).
    7. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    8. Arku, Robert Nutifafa & Higgins, Christopher D. & Farber, Steven, 2025. "Untangling proximity and accessibility effects of transit on property prices," Transport Policy, Elsevier, vol. 174(C).
    9. Tian, Chuanhao & Peng, Ying & Wen, Haizhen & Yue, Wenze & Fang, Li, 2021. "Subway boosts housing values, for whom: A quasi-experimental analysis," Research in Transportation Economics, Elsevier, vol. 90(C).
    10. 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.
    11. Chinmoy Ghosh & Venkatesh Panchapagesan & Madalasa Venkataraman, 2024. "On the Impact of Infrastructure Improvement on Real Estate Property Values: Evidence from a Quasi-natural Experiment in an Emerging Market," The Journal of Real Estate Finance and Economics, Springer, vol. 68(1), pages 103-137, January.
    12. Miotti, Marco & Needell, Zachary A. & Jain, Rishee K., 2023. "The impact of urban form on daily mobility demand and energy use: Evidence from the United States," Applied Energy, Elsevier, vol. 339(C).
    13. 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.
    14. Zhu, Junjie & Guo, Hongfeng, 2025. "Does the development of high-speed rail benefit carbon emissions reduction?," Transport Policy, Elsevier, vol. 172(C).
    15. 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.
    16. Aston, Laura & Currie, Graham & Kamruzzaman, Md. & Delbosc, Alexa & Teller, David, 2020. "Study design impacts on built environment and transit use research," Journal of Transport Geography, Elsevier, vol. 82(C).
    17. Zhu, Pengyu & Tan, Xinying & Zhao, Songnian & Shi, Shuai & Wang, Mingshu, 2022. "Land use regulations, transit investment, and commuting preferences," Land Use Policy, Elsevier, vol. 122(C).
    18. Ponzo, Michela & Scoppa, Vincenzo, 2023. "Famous after death: The effect of a writer's death on book sales," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 210-225.
    19. Erik Elldér & Katarina Haugen & Bertil Vilhelmson, 2022. "When local access matters: A detailed analysis of place, neighbourhood amenities and travel choice," Urban Studies, Urban Studies Journal Limited, vol. 59(1), pages 120-139, January.
    20. Yen, Barbara T.H. & Mulley, Corinne & Shearer, Heather & Burke, Matthew, 2018. "Announcement, construction or delivery: When does value uplift occur for residential properties? Evidence from the Gold Coast Light Rail system in Australia," Land Use Policy, Elsevier, vol. 73(C), pages 412-422.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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:trapol:v:176:y:2026:i:c:s0967070x25004706. 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/30473/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.