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Accessibility and Environmental Quality: Inequality in the Paris Housing Market

  • André de Palma

    ()

    (University of Cergy-Pontoise and Ecole Nationale de Ponts et Chaussées, France)

  • Kiarash Motamedi

    ()

    (University of Cergy-Pontoise, France)

  • Nathalie Picard

    ()

    (University of Cergy-Pontoise, France)

  • Paul Waddell

    (University of Washington, USA)

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.

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Paper provided by THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise in its series THEMA Working Papers with number 2007-16.

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Date of creation: 2007
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Handle: RePEc:ema:worpap:2007-16
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  1. André de Palma & Nathalie Picard & Paul Waddell, 2007. "Discrete choice models with capacity constraints: an empirical analysis of the housing market of the greater Paris region," THEMA Working Papers 2007-04, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  2. 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.
  3. 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.
  4. Jens Schade & Bernhard Schlag, 2000. "Acceptability of Urban Transport Pricing," Research Reports 72, Government Institute for Economic Research Finland (VATT).
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