Economic impact of a supply change in mass transit in urban areas: A Canadian example
economics - benefits, land use - smart growth, land use - transit oriented development, mode - bus rapid transit, place - north america
Policy evaluation, Rapid bus transit, Public transportation, Hedonic price model, Difference-in-differences estimator, Economic impact
This paper aims at estimating the economic impact of a supply change in the bus transit service in a Canadian city of medium size. By using a quasi-experiment approach and a difference-in-differences (DID) estimator, it evaluates the impact of the introduction of a rapid bus transit (RBT) in Quebec City (Canada) through a spatio-temporal analysis of house price variations. The hedonic price model shows that the new service generates an increase in house price ranging from 6.9% to 2.9%, for those properties located close to the service corridor where the population is quite dense and where the service was offered initially. Using sales transaction data and municipal assessment records from 1997, the effect on price is translated into an economic impact for the whole region. The paper shows that the improvement in public transit supply generates, for Quebec City, a significant fiscal impact estimated to $6 M and a plus-value for properties owners close to $35 M over 12 years. Finally, the implications of this kind of analysis for urban planning and development are discussed.
Permission to publish the abstract has been given by Elsevier, copyright remains with them.
Dubé, J., Des Rosiers, F., Thériault, M., & Dib, P. (2010). Economic impact of a supply change in mass transit in urban areas: A Canadian example. Transportation Research Part A: Policy and Practice, Vol. 45, (1), Pp. 46-62.