Economic impact of a supply change in mass transit in urban areas : a Canadian example

Authors: Dubé, JeanDes Rosiers, FrançoisThériault, Marius; Dib, Patricia
Abstract: 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.
Document Type: Article de recherche
Issue Date: 13 October 2010
Open Access Date: Restricted access
Document version: VoR
Permalink: http://hdl.handle.net/20.500.11794/2888
This document was published in: Transportation Research Part A, Vol. 45 (1), 46–62 (2011)
https://doi.org/10.1016/j.tra.2010.09.002
Elsevier
Alternative version: 10.1016/j.tra.2010.09.002
Collection:Articles publiés dans des revues avec comité de lecture

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