IDEAS home Printed from https://ideas.repec.org/a/wly/jnddns/v2016y2016i1n1840673.html

Minimizing Investment Risk of Integrated Rail and Transit‐Oriented‐Development Projects over Years in a Linear Monocentric City

Author

Listed:
  • Ding Liu
  • Xi Jiang
  • Lingyun Meng
  • Ying-En (Ethan) Ge

Abstract

Rail and transit‐oriented‐development (TOD) projects are simultaneously optimized in this paper, with special consideration given to yearly variation and spatial and temporal correlation of population densities. In the proposed model, the objective is to minimize the investment risk of integrated rail and TOD projects with a given required expected return on investment. The investment risk is optimized based on closed‐form solutions of the design variables, including rail line length, the number of TOD projects, and the number of housing units in each TOD project. The closed‐form solutions are given explicitly under the assumption of social welfare maximization. It is found that underestimation exists for rail and TOD projects without consideration of the correlation of spatial and temporal population densities. TOD projects can greatly improve the return on investment of the rail operator. A numerical example is also presented.

Suggested Citation

  • Ding Liu & Xi Jiang & Lingyun Meng & Ying-En (Ethan) Ge, 2016. "Minimizing Investment Risk of Integrated Rail and Transit‐Oriented‐Development Projects over Years in a Linear Monocentric City," Discrete Dynamics in Nature and Society, John Wiley & Sons, vol. 2016(1).
    • Handle: RePEc:wly:jnddns:v:2016:y:2016:i:1:n:1840673
    DOI: 10.1155/2016/1840673
    as

    Download full text from publisher

    File URL: https://doi.org/10.1155/2016/1840673
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2016/1840673?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
    ---><---

    References listed on IDEAS

    as
    1. repec:dau:papers:123456789/13190 is not listed on IDEAS
    2. Hartwick, John & Schweizer, Urs & Varaiya, Pravin, 1976. "Comparative statics of a residential economy with several classes," Journal of Economic Theory, Elsevier, vol. 13(3), pages 396-413, December.
    3. Cervero, Robert, 1994. "Transit-based housing in California: evidence on ridership impacts," Transport Policy, Elsevier, vol. 1(3), pages 174-183, June.
    4. 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.
    5. Zopounidis, C., 1999. "Multicriteria decision aid in financial management," European Journal of Operational Research, Elsevier, vol. 119(2), pages 404-415, December.
    6. Siman Tang & Hong Lo, 2010. "On the financial viability of mass transit development: the case of Hong Kong," Transportation, Springer, vol. 37(2), pages 299-316, March.
    7. Youngsun Kwon, 2003. "The Effect of a Change in Wages on Welfare in a Two–Class Monocentric City," Journal of Regional Science, Wiley Blackwell, vol. 43(1), pages 63-72, February.
    8. Siskos, J. & Zopounidis, C., 1987. "The evaluation criteria of the venture capital investment activity: An interactive assessment," European Journal of Operational Research, Elsevier, vol. 31(3), pages 304-313, September.
    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. 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.
    2. 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.
    3. Li, Zhi-Chun & Ma, Jia-Chun, 2021. "Investing in inter-city and/or intra-city rail lines? A general equilibrium analysis for a two-city system," Transport Policy, Elsevier, vol. 108(C), pages 59-82.
    4. Tabuchi, Takatoshi, 2023. "Backward-bending labor supply and urban location," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    5. Liu, Jianing & Wen, Xiao & Jian, Sisi, 2024. "Toward better equity: Analyzing travel patterns through a neural network approach in mobility-as-a-service," Transport Policy, Elsevier, vol. 153(C), pages 110-126.
    6. Tsionas, Mike G., 2019. "Multi-objective optimization using statistical models," European Journal of Operational Research, Elsevier, vol. 276(1), pages 364-378.
    7. Zopounidis, Constantin & Doumpos, Michael, 2001. "A preference disaggregation decision support system for financial classification problems," European Journal of Operational Research, Elsevier, vol. 130(2), pages 402-413, April.
    8. Karsu, Özlem & Morton, Alec, 2015. "Inequity averse optimization in operational research," European Journal of Operational Research, Elsevier, vol. 245(2), pages 343-359.
    9. Deman, S., 2000. "The real estate takeover: Application of Grossman and Hart theory," International Review of Financial Analysis, Elsevier, vol. 9(2), pages 175-195.
    10. Mulliner, Emma & Smallbone, Kieran & Maliene, Vida, 2013. "An assessment of sustainable housing affordability using a multiple criteria decision making method," Omega, Elsevier, vol. 41(2), pages 270-279.
    11. Muhammad Riaz & Wojciech Sałabun & Hafiz Muhammad Athar Farid & Nawazish Ali & Jarosław Wątróbski, 2020. "A Robust q-Rung Orthopair Fuzzy Information Aggregation Using Einstein Operations with Application to Sustainable Energy Planning Decision Management," Energies, MDPI, vol. 13(9), pages 1-39, May.
    12. Guerra, Erick & Cervero, Robert & Tischler, Daniel, 2011. "The Half-Mile Circle: Does It Represent Transit Station Catchments?," University of California Transportation Center, Working Papers qt0d84c2f4, University of California Transportation Center.
    13. Cynthia Chen & Hongmian Gong & Robert Paaswell, 2008. "Role of the built environment on mode choice decisions: additional evidence on the impact of density," Transportation, Springer, vol. 35(3), pages 285-299, May.
    14. Brueckner, Jan K., 2005. "Transport subsidies, system choice, and urban sprawl," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 715-733, November.
    15. Gawlik Remigiusz & Głuszak Michał & Małkowska Agnieszka, 2017. "The Measurement of Housing Preferences in the Analytic Hierarchy Process," Folia Oeconomica Stetinensia, Paradigm, vol. 17(1), pages 31-43, June.
    16. Bo Wan & Xudan Zhao & Yuhan Sun & Tao Yang, 2023. "Unraveling the Impact of Spatial Configuration on TOD Function Mix Use and Spatial Intensity: An Analysis of 47 Morning Top-Flow Stations in Beijing (2018–2020)," Sustainability, MDPI, vol. 15(10), pages 1-27, May.
    17. Qing Su, 2017. "Travel Demand Management Policy Instruments, Urban Spatial Characteristics, and Household Greenhouse Gas Emissions from Travel in the US Urban Areas," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 7(3), pages 157-166.
    18. Cervero, Robert & Guerra, Erick, 2011. "Urban Densities and Transit: A Multi-dimensional Perspective," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt3mb598qr, Institute of Transportation Studies, UC Berkeley.
    19. Marcus Berliant & Shin-Kun Peng & Ping Wang, 2014. "Taxing pollution: agglomeration and welfare consequences," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(3), pages 665-704, April.
    20. Del Rey, Elena, 2004. "Funding schools for greater equity," Regional Science and Urban Economics, Elsevier, vol. 34(2), pages 203-224, March.

    More about this item

    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:wly:jnddns:v:2016:y:2016:i:1:n:1840673. 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: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/3059 .

    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.