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The Value of Access to Rail Transit in a Congested City: Evidence from Housing Prices in Beijing
Author(s) -
Li Tao
Publication year - 2017
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.12222
Subject(s) - beijing , transit (satellite) , traffic congestion , business , value (mathematics) , urban rail transit , transport engineering , rail transit , public transport , economics , public economics , geography , china , engineering , computer science , archaeology , machine learning
Using unique data sets of Beijing's congestion patterns and housing prices, I find that consumers are willing to pay significantly more for access to rail transit in more congested areas. Transit accessibility, however, offers little travel advantage outside of dense urban areas. The expansion of the metro network mitigates the costs of road congestion, creating both private and social benefits. Two policy initiatives aimed at reducing congestion are found to have achieved positive value effects. Further analysis reveals heterogeneous demand for accessibility, with wealthier residents and those owning fewer cars paying a higher premium for access to rail transit.