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Accessibility and environmental quality: inequality in the Paris housing market

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  • De Palma, Andre
  • Motamedi, Kiarash
  • Picard, Nathalie
  • Waddell, Paul

Abstract

In this paper we examine empirically the market for local amenities in the Paris metropolitan region. We find first that there is considerable inequality in the spatial distribution of these local amenities, including accessibility, environmental and social indicators. We use a spatial representation and Lorenz curves to examine the degree of inequality in these amenities, and this provides evidence that some amenities (or disamenities) are much more inequitably distributed than others. The most extremely unequally distributed amenities are noise (due to its concentration near airports), ‘Redevelopment Areas’, presence of water (lakes and rivers) and forests, and presence of train and subway stations. Some indicators, such as the ‘Poulit accessibility’ measure, were by contrast remarkably constant over the region. We recognize that local amenities should be capitalized into the housing market, and explore the willingness to pay of households for these amenities within the Paris region using alternative specifications of a location choice model. One of the core questions we examine is the spatial scale of the amenity effects and how this is captured in a location choice context. By estimating models at both a commune and at a grid cell level, we obtain new insights into how households in the Paris region trade off amenities against each other and against housing cost. We find that the residential location choice model fits the data moderately better at the smaller scale of the grid cell compared to the commune.

Suggested Citation

  • De Palma, Andre & Motamedi, Kiarash & Picard, Nathalie & Waddell, Paul, 2007. "Accessibility and environmental quality: inequality in the Paris housing market," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 36, pages 47-74.
  • Handle: RePEc:sot:journl:y:2007:i:36:p:47-74
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    References listed on IDEAS

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    1. de Palma, Andre & Picard, Nathalie & Waddell, Paul, 2007. "Discrete choice models with capacity constraints: An empirical analysis of the housing market of the greater Paris region," Journal of Urban Economics, Elsevier, vol. 62(2), pages 204-230, September.
    2. de Palma, Andre & Motamedi, Kiarash & Picard, Nathalie & Waddell, Paul, 2005. "A model of residential location choice with endogenous housing prices and traffic for the Paris region," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 31, pages 67-82.
    3. F. H. Knight, 1924. "Some Fallacies in the Interpretation of Social Cost," The Quarterly Journal of Economics, Oxford University Press, vol. 38(4), pages 582-606.
    4. Schade, Jens & Schlag, Bernhard, 2000. "Acceptability of Urban Transport Pricing," Research Reports 72, VATT Institute for Economic Research.
    5. Mingche M. Li & H. James Brown, 1980. "Micro-Neighborhood Externalities and Hedonic Housing Prices," Land Economics, University of Wisconsin Press, vol. 56(2), pages 125-141.
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    Citations

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    Cited by:

    1. Ignacio A. Inoa & Nathalie Picard & André de Palma, 2015. "Effect of an Accessibility Measure in a Model for Choice of Residential Location, Workplace, and Type of Employment," Mathematical Population Studies, Taylor & Francis Journals, vol. 22(1), pages 4-36, March.
    2. Nathalie Picard & Constantinos Antoniou, 2011. "Econometric guidance for developing UrbanSim models. First lessons from the SustainCity project," ERSA conference papers ersa11p1494, European Regional Science Association.
    3. Nathalie Picard & Constantinos Antoniou, 2014. "Econometric Methods For Land Use Microsimulation," Working Papers hal-01092031, HAL.
    4. Guillaume POUYANNE (GREThA-GRES), 2008. "Economics of discontinuous urban development (In French)," Cahiers du GRES (2002-2009) 2008-06, Groupement de Recherches Economiques et Sociales.
    5. Ignacio A. Inoa & Nathalie Picard & André de Palma, 2013. "Commuting Time and Accessibility in a Joint Residential Location, Workplace, and Job Type Choice Model," THEMA Working Papers 2013-02, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

    More about this item

    Keywords

    Inequality; Efficiency; Local public goods; Residential location; Integrated model; Transportation modelling; Paris area;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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