IDEAS home Printed from https://ideas.repec.org/p/akf/cafewp/24.html
   My bibliography  Save this paper

Do Bicycle Networks Have Economic Value? A Hedonic Application to Greater Manchester

Author

Listed:
  • Hearne, David
  • Yerushalmi, Erez

Abstract

This paper quantifies the association between proximity to bicycle networks and house prices in Greater Manchester using hedonic and spatial regressions. Given the challenges of congestion and pollution, many cities across the world are implementing policies to improve bicycling facilities and other active modes of transport. Bicycle lanes are a solution that could potentially provide significant amenities to residents, but they require investment and the appropriation of limited land. Drawing on a large dataset of approximately 253,000 transactions, over a 9-year period, we find that a 1 km reduction in distance to the nearest bicycle network is associated with property values being around 3.2% higher, on average, and 7.3% higher in the central borough of Manchester. We also provide an applied example to rank new bicycle routes by comparing their benefit-to-cost ratios.

Suggested Citation

  • Hearne, David & Yerushalmi, Erez, 2023. "Do Bicycle Networks Have Economic Value? A Hedonic Application to Greater Manchester," CAFE Working Papers 24, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    • Handle: RePEc:akf:cafewp:24
    as

    Download full text from publisher

    File URL: https://www.open-access.bcu.ac.uk/14932/7/Manuscript_%2020231212_Hearne%20and%20Yerushalmi%20-%20WP24%20-%20Value%20of%20bicycle%20networks%20in%20Greater%20Manchester.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen Gibbons & Cong Peng & Cheng Keat Tang, 2021. "Valuing the Environmental Benefits of Canals and Canal Restoration Using House Prices," Land Economics, University of Wisconsin Press, vol. 97(4), pages 858-874.
    2. Stephen Gibbons & Susana Mourato & Guilherme Resende, 2014. "The Amenity Value of English Nature: A Hedonic Price Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(2), pages 175-196, February.
    3. Ian Davidoff & Andrew Leigh, 2008. "How Much do Public Schools Really Cost? Estimating the Relationship between House Prices and School Quality," The Economic Record, The Economic Society of Australia, vol. 84(265), pages 193-206, June.
    4. Fishman, E. & Schepers, P. & Kamphuis, C.B.M., 2015. "Dutch cycling: Quantifying the health and related economic benefits," American Journal of Public Health, American Public Health Association, vol. 105(8), pages 13-15.
    5. 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.
    6. Ralph Chapman & Michael Keall & Philippa Howden-Chapman & Mark Grams & Karen Witten & Edward Randal & Alistair Woodward, 2018. "A Cost Benefit Analysis of an Active Travel Intervention with Health and Carbon Emission Reduction Benefits," IJERPH, MDPI, vol. 15(5), pages 1-10, May.
    7. Honaker, James & King, Gary & Blackwell, Matthew, 2011. "Amelia II: A Program for Missing Data," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 45(i07).
    8. Delores Conway & Christina Li & Jennifer Wolch & Christopher Kahle & Michael Jerrett, 2010. "A Spatial Autocorrelation Approach for Examining the Effects of Urban Greenspace on Residential Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 41(2), pages 150-169, August.
    9. Brown, Vicki & Diomedi, Belen Zapata & Moodie, Marj & Veerman, J. Lennert & Carter, Rob, 2016. "A systematic review of economic analyses of active transport interventions that include physical activity benefits," Transport Policy, Elsevier, vol. 45(C), pages 190-208.
    10. Joshua K. Abbott & H. Allen Klaiber, 2011. "An Embarrassment of Riches: Confronting Omitted Variable Bias and Multi-Scale Capitalization in Hedonic Price Models," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1331-1342, November.
    11. Abbott, Joshua K. & Klaiber, H. Allen, 2010. "Is all space created equal? Uncovering the relationship between competing land uses in subdivisions," Ecological Economics, Elsevier, vol. 70(2), pages 296-307, December.
    12. Yasin Sunak & Reinhard Madlener, 2017. "The impact of wind farms on property values: A locally weighted hedonic pricing model," Papers in Regional Science, Wiley Blackwell, vol. 96(2), pages 423-444, 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. Yoo, James & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J. & Kinzig, Ann P. & Perrings, Charles, 2013. "The value of agricultural water rights in agricultural properties in the path of development," Ecological Economics, Elsevier, vol. 91(C), pages 57-68.
    2. Peter Phibbs & Nicole Gurran, 2021. "The role and significance of planning in the determination of house prices in Australia: Recent policy debates," Environment and Planning A, , vol. 53(3), pages 457-479, May.
    3. Dröes, Martijn I. & Koster, Hans R.A., 2016. "Renewable energy and negative externalities: The effect of wind turbines on house prices," Journal of Urban Economics, Elsevier, vol. 96(C), pages 121-141.
    4. H. Allen Klaiber & Joshua K. Abbott & V. Kerry Smith, 2017. "Some Like It (Less) Hot: Extracting Trade-Off Measures for Physically Coupled Amenities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(4), pages 1053-1079.
    5. Abbott, Joshua K. & Klaiber, H. Allen, 2011. "The Value Of Water As An Urban Club Good: A Matching Approach To Hoa-Provided Lakes," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103781, Agricultural and Applied Economics Association.
    6. Wenjie Wu, 2012. "Does Public Investment Spur the Land Market?: Evidence from Transport Improvement in Beijing," SERC Discussion Papers 0116, Centre for Economic Performance, LSE.
    7. Marta Sylla & Tadeusz Lasota & Szymon Szewrański, 2019. "Valuing Environmental Amenities in Peri-Urban Areas: Evidence from Poland," Sustainability, MDPI, vol. 11(3), pages 1-15, January.
    8. Kathrine von Graevenitz & Toke Emil Panduro, 2015. "An Alternative to the Standard Spatial Econometric Approaches in Hedonic House Price Models," Land Economics, University of Wisconsin Press, vol. 91(2), pages 386-409.
    9. Fernandez, Mario Andres & Bucaram, Santiago, 2019. "The changing face of environmental amenities: Heterogeneity across housing submarkets and time," Land Use Policy, Elsevier, vol. 83(C), pages 449-460.
    10. Daams, Michiel N. & Sijtsma, Frans J. & Veneri, Paolo, 2019. "Mixed monetary and non-monetary valuation of attractive urban green space: A case study using Amsterdam house prices," Ecological Economics, Elsevier, vol. 166(C), pages 1-1.
    11. Thanos, Sotirios & Dubé, Jean & Legros, Diègo, 2016. "Putting time into space: the temporal coherence of spatial applications in the housing market," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 78-88.
    12. Dani Broitman, 2020. "The Game of Developers and Planners: Ecosystem Services as a (Hidden) Regulation through Planning Delay Times," Sustainability, MDPI, vol. 12(15), pages 1-14, July.
    13. Abbott, Joshua K. & Allen Klaiber, H., 2013. "The value of water as an urban club good: A matching approach to community-provided lakes," Journal of Environmental Economics and Management, Elsevier, vol. 65(2), pages 208-224.
    14. Dani Broitman & Vladimir Griskin & Daniel Czamanski, 2019. "Unbundling negative and positive externalities of nature in cities: The influence of wild animals on housing prices," Urban Studies, Urban Studies Journal Limited, vol. 56(13), pages 2820-2836, October.
    15. Louis Lategan & Juaneé Cilliers & Zinea Huston & Nadia Blaauw & Sarel Cilliers, 2021. "Economic Assessment of South African Urban Green Spaces Using the Proximity Principle: Municipal Valuation vs. Market Value," Urban Planning, Cogitatio Press, vol. 6(4), pages 54-66.
    16. Irwin, Nicholas B. & Klaiber, H. Allen & Irwin, Elena G., 2017. "Do Stormwater Basins Generate co-Benefits? Evidence from Baltimore County, Maryland," Ecological Economics, Elsevier, vol. 141(C), pages 202-212.
    17. Jesse Burkhardt & Nathan W. Chan & Bryan Bollinger & Kenneth T. Gillingham, 2022. "Conformity and Conservation: Evidence from Home Landscaping and Water Conservation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 228-248, January.
    18. Chun-Chang Lee & Chih-Min Liang & Cheng-Huang Tung & Yu-Jian Lu, 2018. "The Impact of Luxury Housing on Neighborhood Housing Prices in Taipei City," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(10), pages 1211-1225, October.
    19. Bade, David & Castillo, Jose Gabriel & Fernandez, Mario Andres & Aguilar-Bohorquez, Joseph, 2020. "The price premium of heritage in the housing market: evidence from Auckland, New Zealand," Land Use Policy, Elsevier, vol. 99(C).
    20. Henry Wüstemann & Gero Coppel & Marco Masin, 2015. "Landnutzung und ländlicher Tourismus: Eine hedonische Analyse," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 8(1), pages 48-59.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:akf:cafewp:24. 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: Research Publications Librarian (email available below). General contact details of provider: https://edirc.repec.org/data/bsuceuk.html .

    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.