IDEAS home Printed from https://ideas.repec.org/p/cpb/discus/423.html
   My bibliography  Save this paper

Housing Market Effects of a Railroad Tunneling: Evidence from a quasi-experiment

Author

Listed:
  • Koen van Ruijven

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Joep Tijm

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

The railroad tunnelling in Delft (the Netherlands) has led to substantial, additional, increases in residential property prices. Our results show that the price elasticity with respect to the distance to the (tunnelled) railroad would have been about 5 percentage points lower in case Delft would not have tunneled its railroad. In a Dutch document ‘De leefbaarheidseffecten van Spoorzone Delft’ we explain that the increased liveability can be valued at 400 million euros. Read the Dutch document ‘De leefbaarheidseffecten van Spoorzone Delft’. Inhabitants of Delft have experienced significant nuisance from railroad traffic. Since 1965, trains entered the city via an elevated track that ran right through the city. In our analyses we show that noise and other forms of nuisance made living close to the train tracks less attractive, which was reflected in residential property prices. For this research we have used a dataset provided by the NVM (the largest association of real estate agents and appraisers in the Netherlands) containing residential property characteristics and transaction prices starting in 1995. Besides the effect on residential property prices, we show that the railroad tunneling has led to sorting effects. Our results indicate that the socioeconomic status of inhabitants of neighbourhoods around the tunnel has changed substantially due to the railroad tunnelling.

Suggested Citation

  • Koen van Ruijven & Joep Tijm, 2021. "Housing Market Effects of a Railroad Tunneling: Evidence from a quasi-experiment," CPB Discussion Paper 423, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:423
    DOI: 10.34932/kkq7-br14
    as

    Download full text from publisher

    File URL: https://www.cpb.nl/sites/default/files/omnidownload/CPB-Discussion-Paper-423-Housing-Market-Effects-of-a-Railroad-Tunneling.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.34932/kkq7-br14?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. Victor Chernozhukov & Christian Hansen & Martin Spindler, 2015. "Post-Selection and Post-Regularization Inference in Linear Models with Many Controls and Instruments," American Economic Review, American Economic Association, vol. 105(5), pages 486-490, May.
    2. Larry C. L. Poon, 1978. "Railway Externalities and Residential Property Prices," Land Economics, University of Wisconsin Press, vol. 54(2), pages 218-227.
    3. Michael Greenstone & Justin Gallagher, 2008. "Does Hazardous Waste Matter? Evidence from the Housing Market and the Superfund Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 951-1003.
    4. Saia, Alessandro, 2017. "Choosing the open sea: The cost to the UK of staying out of the euro," Journal of International Economics, Elsevier, vol. 108(C), pages 82-98.
    5. Acemoglu, Daron & Johnson, Simon & Kermani, Amir & Kwak, James & Mitton, Todd, 2016. "The value of connections in turbulent times: Evidence from the United States," Journal of Financial Economics, Elsevier, vol. 121(2), pages 368-391.
    6. Nathaniel Baum-Snow & Loren Brandt & J. Vernon Henderson & Matthew A. Turner & Qinghua Zhang, 2017. "Roads, Railroads, and Decentralization of Chinese Cities," The Review of Economics and Statistics, MIT Press, vol. 99(3), pages 435-448, July.
    7. Mi Diao & Yu Qin & Tien Foo Sing, 2016. "Negative Externalities of Rail Noise and Housing Values: Evidence from the Cessation of Railway Operations in Singapore," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 44(4), pages 878-917, October.
    8. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    9. Paulo Rui Anciaes & Peter Jones & Jennifer S. Mindell, 2016. "Community Severance: Where Is It Found and at What Cost?," Transport Reviews, Taylor & Francis Journals, vol. 36(3), pages 293-317, May.
    10. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
    11. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
    12. Boes, Stefan & Nüesch, Stephan, 2011. "Quasi-experimental evidence on the effect of aircraft noise on apartment rents," Journal of Urban Economics, Elsevier, vol. 69(2), pages 196-204, March.
    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. Koen van Ruijven & Joep Tijm, 2021. "Housing Market Effects of a Railroad Tunneling: Evidence from a quasi-experiment," CPB Discussion Paper 423.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Nauro Campos & Fabrizio Coricelli & Luigi Moretti,, 2020. "Choosing Institutional over Economic Integration: Are There Growth Effects?," Working Papers hal-03028143, HAL.
    3. Christian Almer & Stefan Boes & Stephan Nüesch, 2017. "Adjustments in the housing market after an environmental shock: evidence from a large-scale change in aircraft noise exposure," Oxford Economic Papers, Oxford University Press, vol. 69(4), pages 918-938.
    4. Christian Almer & Stefan Boes & Stephan Nuesch, 2013. "How do Housing Prices Adjust After an Environmental Shock? Evidence from a State-Mandated Change in Aircraft Noise Exposure," Department of Economics Working Papers 11/12, University of Bath, Department of Economics.
    5. Samuel Verevis & Murat Üngör, 2021. "What has New Zealand gained from The FTA with China?: Two counterfactual analyses†," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(1), pages 20-50, February.
    6. Echevarría, Cruz A. & Hasancebi, Serhat & García-Enríquez, Javier, 2022. "Economic Effects of Macao’s Integration with Mainland China: A Causal Inference Study," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 179-215.
    7. Bruno Ferman & Cristine Pinto & Vitor Possebom, 2020. "Cherry Picking with Synthetic Controls," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 510-532, March.
    8. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    9. Pekka Malo & Juha Eskelinen & Xun Zhou & Timo Kuosmanen, 2024. "Computing Synthetic Controls Using Bilevel Optimization," Computational Economics, Springer;Society for Computational Economics, vol. 64(2), pages 1113-1136, August.
    10. Silvia Marchesi & Tania Masi, 2019. "Sovereign risk after sovereign restructuring. Private and official default," Working Papers 423, University of Milano-Bicocca, Department of Economics, revised Nov 2019.
    11. Michael Funke & Kadri Männasoo & Helery Tasane, 2023. "Regional Economic Impacts of the Øresund Cross-Border Fixed Link: Cui Bono?," CESifo Working Paper Series 10557, CESifo.
    12. Barseghyan, Gayane, 2019. "Sanctions and counter-sanctions : What did they do?," BOFIT Discussion Papers 24/2019, Bank of Finland, Institute for Economies in Transition.
    13. Freund, Caroline & Mulabdic, Alen & Ruta, Michele, 2022. "Is 3D printing a threat to global trade? The trade effects you didn't hear about," Journal of International Economics, Elsevier, vol. 138(C).
    14. Cummins Joseph & Miller Douglas L. & Smith Brock & Simon David, 2024. "Matching on Noise: Finite Sample Bias in the Synthetic Control Estimator," Journal of Econometric Methods, De Gruyter, vol. 13(1), pages 67-95, January.
    15. Tomasz Serwach, 2023. "The European Union and within‐country income inequalities. The case of the new member states," The World Economy, Wiley Blackwell, vol. 46(7), pages 1890-1939, July.
    16. Kuosmanen, Timo & Zhou, Xun & Eskelinen, Juha & Malo, Pekka, 2021. "Design Flaw of the Synthetic Control Method," MPRA Paper 106328, University Library of Munich, Germany.
    17. Tomasz Serwach, 2022. "The European Union and within-country income inequalities. The case of the New Member States," Working Papers hal-03548416, HAL.
    18. Douch, Mustaph & Huw Edwards, T., 2021. "The Brexit policy shock: Were UK services exports affected, and when?," Journal of Economic Behavior & Organization, Elsevier, vol. 182(C), pages 248-263.
    19. Giulio Grossi & Marco Mariani & Alessandra Mattei & Patrizia Lattarulo & Ozge Oner, 2020. "Direct and spillover effects of a new tramway line on the commercial vitality of peripheral streets. A synthetic-control approach," Papers 2004.05027, arXiv.org, revised Nov 2023.
    20. Marchesi, Silvia & Masi, Tania, 2021. "Life after default. Private and official deals," Journal of International Money and Finance, Elsevier, vol. 113(C).

    More about this item

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    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:cpb:discus:423. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/cpbgvnl.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.