Impacts of rail transit access on land and housing values in China: a quantitative synthesis

ABSTRACT

Rail transit investment has been viewed as a prominent policy instrument for local and regional development. However, little is known about to what extent the theorised changes in land and housing values arising from rail transit access can be substantiated by evidence in a large developing country context. This paper presents a quantitative review of empirical studies that analysed the impacts of rail transit access on land and housing values in China. We review empirical analyses in 67 studies from 1997 to 2018 for which we encode quantitative results along with a range of theoretically combinations of spatially contextual characteristics, data and methodological-design characteristics. The results show that there are significant variations in the size estimates of effects of rail transit access across studies. Such variations are associated with rail project types, data and methodological designs. Our study provides the insights on what has already been known and what needs to be known on evaluating real estate consequences of rail transit improvements in developing countries.     

The impact of rail transit on land use: Evidence and a change of perspective

On the basis of available evidence we cannot clearly establish a causal relationship between rail transit and changes in land use and development patterns. At best, such changes would seem to occur only in the presence of other favorable factors, such as supportive local land use policies and development incentives, availability of developable land and a good investment climate. In any event, however, determining the precise extent of rail investment's effect on urban structure is less important than assessing the role it could play in an overall strategy for reaching larger urban goals.     

Hedonic modeling of commercial property values: distance decay from the links and nodes of rail and highway infrastructure

Transportation - This study investigates the impacts of positive and negative externalities of highways and light rail on commercial property values in Phoenix, Arizona. We hypothesize that the...     

The impact of urban rail transit on commercial property value: New evidence from Wuhan,China

The interaction between rail transit and the urban property market is a vital foundation for planning transit-based policy such as Value Capture and Transit Oriented Development (TOD). Yet only few studies have reported the impact of transit access on commercial property value. This paper presents empirical evidence from Wuhan, China, to enrich the knowledge in the subject area. Spatial autoregressive models were employed to estimate the commercial value capture, based on 676 observations along Wuhan’s metro rail line through the main business districts. Value appreciation was discovered within the 400 m radius of road network distance from Metro stations. The transit access premiums present as two tiers: 16.7% for the 0–100 m core area and approximately 8.0% within the 100–400 m radius. The result demonstrates the potential benefit of adopting value capture and optimising TOD planning to support sustainable urban rail transit investment. Amid rapid urbanisation in China, the evidence reported here could help better inform cities, across the developing world and beyond, of the benefits of adopting rail transit-based policy.     

Enhancing the developmental impact of rail transit

A number of forces currently at work in the United States are fostering the rebirth of urban rail transportation. In order to maximize the beneficial economic and developmental impact of future rail investment, certain procedures and techniques must be employed in the planning, design, and implementation of rail systems. The paper offers a set of guidelines and principles for transportation and land use policy makers.     

Modelling the impact of rail fare increases

Rail fares in South-East England have been increasing in real terms for several years, and are expected to continue to do so. In this paper, the impact of such increases is examined in terms of the choices of mode of travel, home and job location, and residential migration. Forecasts are made using a model in which the population is partitioned into four sets according to whether they have changed home and/ or job over the forecast period. The model allocates population to homes and workers to jobs, and commuters to the three modes of travel considered. The impact of an increase of 25% in real fares over a five-year period is examined and a number of conclusions are drawn. The model shows that rail patronage will decline even if transport costs remain constant in real terms, because of decentralisation of jobs and rising car ownership. The overall long-term rail fare elasticity is found to be –0.7, but this is the mean of a wide range of values for different parts of the study area. People ceasing to commute by rail would divide almost equally between car and bus, the latter being used particularly to Central London. Those people who commute to London who are seeking new homes would tend to choose to live nearer London than they would have otherwise. The paper concludes with a discussion of the findings in terms of the assumptions implied in the model.     

Appraisal of rail investment projects: recent British experience

There has long been conflict over the degree to which railways should follow commercial or social investment criteria. This paper outlines the components of a comprehensive social cost‐benefit analysis of railway investment, and then describes the current approach in Britain. British Rail investment proposals are subject to a purely financial appraisal, although in the subsidized sectors of the railway this is subject to the proviso that a ‘broadly comparable’ level of service should be maintained. Local authorities and private operators are able to apply for a central government grant towards the cost of schemes they sponsor. But grant is only payable in respect of external benefits—that is, benefits other than to public transport users. Sponsors are also expected to seek contributions from private developers wherever possible. The difficulties to which this approach leads are discussed, and illustrated with two case studies of actual schemes. In one, it appears that failing to consider disbenefits to bus operators (and in turn to users of bus services) could lead to investments being undertaken which are not justified. In the other, a scheme which yields a high Net Present Value could not go ahead, in the form that we evaluated, because there is no way of recouping enough of the user benefits as revenue. Both are examples of the sort of distorting effect on decision‐making the current regime may have.     

The impact of planned disruptions on rail passenger demand

Transportation - Disruptions to rail journeys are experienced by rail passengers on a daily basis throughout the world, with the impacts on passengers ranging from minimal to major. Such...     

The impact of rail access on condominium prices in Hamburg

Using hedonic price functions, we study the influence of access to public railway stations on the prices of surrounding condominiums in Hamburg, Germany. The study examines the influence of rail infrastructure on residential property prices, not only of individual lines, but for the entire rail network of a metropolitan region. We test the stability of the coefficients for different sets of control variables. The study also estimates public-transit-induced increases in tax revenues due to real estate price increases for a study area outside the United States. We control for spatial dependence and numerous variables correlated with the proximity of railway stations and show that access to the public transit system of the city of Hamburg is to be rated with price increases of up to 4.6%. Such premiums for higher-income neighbourhoods and for subterranean stations tend to be higher. The premiums calculated are significantly lower than average price premiums reported in previous studies, which were mostly based on much fewer variables that rail access might be correlated to.     

Assessing the CO2 impact of current and future rail track in the UK

This paper investigates the CO₂ impact of current and future UK rail track and estimates the material, process and transport emissions associated with construction, maintenance and end-of-life activities for designs at high and low traffic loads. Analysis shows that for current track configurations, track with concrete sleepers has the lowest CO₂ impact, followed by steel, hardwood and softwood. Several potential future rail track designs have been analysed including embedded rail and double and quadruple-headed rail. All future track designs have a lower impact than current designs, but this improvement is more marked at high traffic loads. Up to a 40% reduction in CO₂ impact could be achieved if the UK rail network was to move from conventional track design to a double-headed embedded rail design. Key levers for reducing the CO₂ impact of track are identified as service life extension, traffic load reduction and the selection of low impact track designs.     

Long-term impact of the Shinkansen on rail and air demand: analysis with data from Northeast Japan

This paper analyses how the high-speed rail construction in Northeast Japan (Tohoku) has affected total demand and interregional travel patterns. We use annual interregional passenger data from 1989 to 2012 and apply regression analysis with the demand between Tokyo and the Tohoku prefectures as the dependent variable. We distinguish particularly between the ‘Full-’ and the ‘Mini-’ Shinkansen, where the latter are branch services running with reduced speed. We find that the ‘Full-Shinkansen’ quickly increases rail and total public transport trips and generates additional rail demand year on year. The ‘Mini-Shinkansen’ impacts are less pronounced. Furthermore, our analysis shows that the Shinkansen has shifted some demand from air to rail once it started operation and increased rail share gradually. We therefore suggest that predictions of demand impacts should carefully distinguish immediate from gradual impacts. We also discuss differences in regional demand in that not all prefectures have gained equally from Shinkansen construction.     

Assessing network vulnerability of heavy rail systems with the impact of partial node failures

Much of the literature in recent years has examined the vulnerability of transportation networks. To identify appropriate and operational measures of nodal centrality using connectivity in the case of heavy rail systems, this paper presents a set of comprehensive measures in the form of a Degree of Nodal Connection (DNC) index. The DNC index facilitates a reevaluation of nodal criticality among distinct types of transfer stations in heavy rail networks that present a number of multiple lines between stations. Specifically, a new classification of transfer stations—mandatory transfer, non-mandatory transfer, and end transfer—and a new measure for linkages—link degree and total link degree—introduces the characteristics of heavy rail networks when we accurately expose the vulnerability of a node. The concept of partial node failure is also introduced and compare the results of complete node failure scenarios. Four local and global indicators of network vulnerability are derived from the DNC index to assess the vulnerability of major heavy rail networks in the United States. Results indicate that the proposed DNC indexes can inform decision makers or network planners as they explore and compare the resilience of multi-hubs and multi-line networks in a comprehensive but accurate manner regardless of their network sizes.

     

TRESIS: A transportation,land use and environmental strategy impact simulator for urban areas

The Institute of Transport Studies has developed a Transportation and Environment Strategy Impact Simulator (TRESIS) as a decision support system to assist planners to predict the impact of transport strategies and to make recommendations based on those predictions. A key focus of the simulator is the richness of policy instruments such as new public transport, new toll roads, congestion pricing, gas guzzler taxes, changing residential densities, introducing designated bus lanes, implementing fare changes, altering parking policy, introducing more flexible work practices, and the introduction of more fuel efficient vehicles. The appropriateness of mixtures of policy instruments is gauged in terms of a series of performance indicators such as impacts on greenhouse gas emissions, accessibility, equity, air quality and household consumer surplus. In this paper we introduce TRESIS to the research community, focussing on the structure of the system and the diversity of applications. Applications are presented to illustrate the diversity and richness of TRESIS as a policy advisory tool.     

Privatisation and the quality of rail services

Using the concept of generalised costs to reflect quality in rail services, we consider the level of provision and quality of these services in the various forms they may take in a privatised environment within a model where we assume linear and separable demand and cost functions for analytical simplicity. Using the Pareto-efficient output and quality outcomes under a fully integrated system for reference (as well as those for a fully integrated profit-maximising monopolist) we show that if either bilateral monopoly or complementary monopoly emerge as a market structure the output of train services and their quality will generally fall. In the case of the emergence of both bilateral monopoly and complementary monopoly our analysis again suggests poor welfare outcomes. The implication that can be drawn from our analysis is that a regulator of a privatised rail system faces some severe problems if she is to attain the appropriate welfare targets.     

Using ordered attitudinal indicators in a latent variable choice model: a study of the impact of security on rail travel behaviour

There is growing interest in the use of models that recognise the role of individuals’ attitudes and perceptions in choice behaviour. Rather than relying on simple linear approaches or a potentially bias-inducing deterministic approach based on incorporating stated attitudinal indicators directly in the choice model, researchers have recently recognised the latent nature of attitudes. The uptake of such latent attitude models in applied work has however been slow, while a number of overly simplistic assumptions are also commonly made. In this article, we present an application of jointly estimated attitudinal and choice models to a real-world transport study, looking at the role of latent attitudes in a rail travel context. Our results show the impact that concern with privacy, liberty and security, and distrust of business, technology and authority have on the desire for rail travel in the face of increased security measures, as well as for universal security checks. Alongside demonstrating the applicability of the model in applied work, we also address a number of theoretical issues. We first show the equivalence of two different normalisations discussed in the literature. Unlike many other latent attitude studies, we explicitly recognise the repeated choice nature of the data. Finally, the main methodological contribution comes in replacing the typically used continuous model for attitudinal response by an ordered logit structure which more correctly accounts for the ordinal nature of the indicators.     

The relationship between property values and railroad proximity: a study based on hedonic prices and real estate brokers' appraisals

We study the relationship between the price of residential property value and proximity to railroads in Oslo, by two different methods, namely a) through a hedonic price study where the statistical relationship between property prices and railroad proximity is estimated, and b) through a multi-attribute utility investigation of real estate agents' evaluation of such a relationship. We find in both cases that there are strong effects of proximity to railroad lines on property prices, at distances less than 100 meters from the lines. In the statistical study log-linear relationships fit the data best, and our estimates indicate that a doubling of the distance from the railroad line, within a 100 meter bound, increases the property price by about 10%. With real estate agents only a linear relationship is probed. This yields an increase in the price of an average relevant housing unit by about 182,000 NOK, due to a increase in the distance to a railroad track from 20 to 100 meters. The equivalent figure from the statistical study is in the range 120–150,000 NOK. The two figures are thus of the same magnitude.     

European passenger rail reforms: A comparative assessment of the emerging models

This paper provides a comprehensive framework for analysing and comparing the various institutional models and regulatory arrangements that have recently emerged from the restructuring of European passenger rail industries. The framework identifies seven key dimensions that can be used to describe these models and arrangements. It shows how these dimensions are connected with one another in a complex web of interactions. Empirical material gathered on the passenger rail industries of five EU Member States, i.e. Belgium, France, Germany, the UK, and Sweden is used, as well as extrapolation to highlight the costs and benefits (incentive properties) associated with alternative arrangements and contract features and to show how certain dimensions can be traded-off against one another to optimize the industry's performance.     

A fuzzy method for predicting the demand for rail freight transportation

The demand for rail freight transportation is a continuously changing process over space and time and is affected by many quantitative and qualitative factors. In order to develop a more rational transport planning process to be followed by railway organizations, there is a need to accurately forecast freight demand under a dynamic and uncertain environment. In conventional linear regression analysis, the deviations between the observed and the estimated values are supposed to be due to observation errors. In this paper, taking a different perspective, these deviations are regarded as the fuzziness of the system's structure. The details of fuzzy linear regression method are put forward and discussed in the paper. Based on an analyzes of the characteristics of the rail transportation problem, the proposed model was successfully applied to a real example from China. The results of that application are also presented here.