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on Transport Economics |
| By: | Escobar D.; Cadena-Gaitán C.; Garcia F. (UNU-MERIT) |
| Abstract: | We apply geo-statistical techniques to find relationships between the geographic location of urban Gas Stations GS and operational features offered by the transport network in Manizales Colombia. This research is built upon primary information collected during a period longer than one year using GPS more than 18 million data points. The methodology consists of i The set-up of the entire urban transport infrastructure network, ii The calculation of the average operating speeds in the links, iii The calculation of the global average accessibility offered by the infrastructure network in different transport modes, iv The calculation of the Spatial Coverage Index, area, population and number of houses covered by the curves of travel time. Graphical results explain the average times invested in reaching a particular GS, and quantitative comparisons between different types of stations are studied. Thus, we establish which sectors of the city are deficient in coverage of this type of activity. The overall results reveal the possibility of reaching a GS in Manizales in an average travel time between 4 and 22 min. |
| Keywords: | Other Production and Pricing Analysis; Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise; |
| JEL: | R32 R41 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014048&r=tre |
| By: | Saxinger, Andreas; Nachtsheim, Michaela |
| Abstract: | For many decades long-distance busses were never of great importance in Germany. This part of public transport was almost exclusively provided by railway transportation. Legally, railway transportation was protected from competition. Applications for long-distance bus line concessions had no chance of success.However the amendment of the German Federal Passenger Transportation Act to 1st January 2013 liberalized the German market for long-distance busses significantly. Entrepreneurs still need an official concession, but for granting concessions, it is irrelevant, whether other bus or railway companies already operate the transportation service applied for. On long-distance transportation routes competition between different bus companies is now possible. Parallel operations are allowed.Within a short time applications for many new connections from different companies were submitted. The acceptance of domestic long-distance bus services by passengers is extremely high. Nevertheless, it becomes evident, that new infrastructure in the form of central long-distance bus terminals for the passengers is required. The German Federal Legislator provides no regulations for this type of infrastructure. The German Federal Passenger Transportation Act only knows the term “bus stop�, which requires signage by the bus company (minimal standard.Long-distance bus terminals can be planned in central or peripheral areas of a city. The location depends on the individual case, e.g. if local authorities contribute financially to the construction of the building or finance the construction of the building completely. Beside urban-planning reasons, also reasons of city marketing can be of importance. The actual operation of the terminal is often transferred to external operators. External operators finance themselves by user fees and rental income from shops and offices. It is essential that external operators act neutrally and non-discriminatory towards all terminal users. In addition, rules are required regulating the possible congestion of terminals operated by external operators. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_63&r=tre |
| By: | Don Fullerton; Li Gan; Miwa Hattori |
| Abstract: | Using three years of data from the 47 prefectures of Japan, we estimate behavior of households who simultaneously make discrete decisions about vehicle ownership and continuous decisions about driving distance. We use the estimated parameters to calculate elasticities and to simulate the effects of alternative pollution control policies such as taxes on gasoline, on distance, or on particular cars. Given choices about cars and distance, we also calculate emissions. Since we model simultaneous choices, both the chosen distance and the chosen car can be affected either by a tax on distance or by a tax on car characteristics. We find expected signs for coefficients on price and income. Car choices are relatively inelastic, however, either to taxes on cars or to taxes on gas or distance. Thus emissions are more affected by taxes on gasoline than by taxes on particular vehicles. Yet taxes on cars have lower costs on consumers and thus lower marginal cost of abatement. Given that the existing gas tax already achieves some abatement, mostly through driving reduction, this analysis suggests that further abatement from the use of distance-reducing taxes is more costly than achieving some marginal abatement from induced changes in car choices. The option with the lowest cost is to tax each car at a rate proportional to its emission rate. |
| JEL: | H23 Q52 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20333&r=tre |
| By: | Chin, Lawrence; Husaini, Nur Khairun |
| Abstract: | Housing is a commodity of variable uses, equipped with unique characteristics attributable to internal and external factors, each playing a major role in determining its inherent value. Location theories were developed by early economists to explain the pattern of land use by providing solutions to the problems associated with the optimal use of the land. Improvements in accessibility are expected to generate positive effects on house prices since commuting would be enhanced. Additionally, transportation networks would attract different types of activities for the work, live and play lifestyles for the residents.The objective of the study is to examine the effects of an Integrated Transport Hub (ITH) as an urban planning policy on the prices of public residential estates in Singapore. A controlled empirical study is conducted using the Bukit Panjang Transport Hub to examine the differences in resale prices between units located in the influence and the control areas. Hedonic regression methodology is applied to analyse the impact of the transport mode on the neighbouring residential properties. The hypothesis was formed on the premise that ITHs would generate a housing premium on units located in the influence areas, using walking distance to distinguish between units located near to or away from the transport hub. The findings from the multiple linear regression support the hypothesis when a premium of 12.6% was recorded for units within the influence area.The significance of the study is useful to assist in planning of public transport and its likely influence on prices in the housing market. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_42&r=tre |
| By: | Yeh, Kuang-Yih; Hsia, Hao-Ching |
| Abstract: | The dramatic growing of private vehicles ownership results in heavy traffic congestion and serious environmental pollution in the city, such as air pollution and annoying noise. Professional urban planning experts have attempted to achieve the target mentioned above by adjusting current land use. However, adjusting land use always takes a long time. At the moment, the advanced countries in Europe and the United States have been already paying attention to traffic demand management (TDM) in order to solve these environmental problems and achieve the target of building a sustainable living environment. While road pricing (RP) is generally regarded as one of the most effective measures of TDM, its poor acceptability has been the greatest impediment to its implementation. Japanese scholars proposed the parking deposit system (PDS) as an alternative RP scheme to improve the public acceptance. In view of the above, this study takes a local commercial district of Tainan City as the study area where the data of visitors driving private vehicle are collected by a stated preference questionnaire. Because the acceptances of two policies are considered to be correlated in this study, the choice behavior model of acceptance is established by using bivariate binary probit model. This study also considered that different groups may hold different attitudes, so respondents were separated into two groups according to their consciousness of fairness. Therefore, the choice behavior model of acceptance of fair group and unfair group are built and compared. The result of model estimation has several good implications for the proposal of environmental policy and traffic demand management measures. It indicates that the most important thing that people really care about is cost. That means individual’s behavior can be adjusted by charge schemes. On the other hand, the result of social interaction equilibrium shows that the difference can be obviously distinguished from different groups, so it is recognized that the approval probability of the fair group is higher than the unfair group. The marginal effects of estimated coefficients are also discussed in this study. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_192&r=tre |
| By: | Wu, Wenjie |
| Abstract: | Over 140 billion CNY (1GBP=10CNY) has been spent between 2000 and 2012 in Beijing on the construction of new rail transit lines. Such massive investment allows me to examine the consequences of transport improvement for land prices nearby new stations. Conventional hedonic techniques for valuing rail access mask the changing nature of geographical links between land parcels and stations induced by rail transit expansions. This paper improves on previous literature by applying a spatial multi-intervention difference-in-difference approach to estimate the heterogeneity in the capitalization effects of rail transit development for residential land uses in Beijing. The results show that residential land parcels that receive increased station proximity experience appreciable price premiums, but the relative importance of such benefits varies over space. These findings lend to support the evidence that public investment has an essential role to play in spurring the spatially targeted land market and provide implications for further land and transport policy making in China. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_340&r=tre |
| By: | Hartell, Ann |
| Abstract: | Purpose - As mobility is inextricably linked to housing location, the relationship between transport costs and housing costs is a component of neighborhood-level economic condition and resiliency. A number of studies and policy tools have mapped combined transport and housing costs, but these largely rely on affordability thresholds of income-to-housing costs developed in the 19th century (Hulchanski). For example, the Housing + Transportation (H+T) Index displays location costs and defines neighborhoods above the thresholds as 'unaffordable' (CNT). Notably, the H + T Index and similar analyses do little to link these costs to neighborhood outcomes.Methodology - This study seeks to address this gap by using a regression model to evaluate the joint effect of housing costs and vehicle ownership costs on foreclosure rates.Findings and Limitations - The model reveals that both vehicle costs and housing costs are important factors in neighborhood-level foreclosure rates. In interpreting the results of the analysis it must be kept in mind that it is relevant for the neighborhood level not the household level, having some degree of aggregation. Further, high transport costs may be indicative of other spending behaviors that are the actual factors in increased foreclosure rates. Despite these limitations, the finding that transport costs are an important influence on foreclosure rates raises questions about what the true affordability ratio is for housing, and whether high housing prices and nontraditional mortgages can fully explain the dramatic rise in foreclosures.Value - The study has value for regional planners, providing evidence that transport planning and programs are an important component of neighborhood-level economic conditions, thus lending support to integrated programs. The findings can also help refine definitions of affordability so as to better align programs with policy goals. For the transport sector, the model could be used to assess benefits and costs of potential transport investments. For housing developers, the analysis suggests that marketing messages highlighting affordability could be enhanced by including information about transport costs. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_68&r=tre |
| By: | Lee, Jae-Kwang; Ke, Qiulin |
| Abstract: | As numerous transport infrastructure projects have been implemented, recent years have witnessed a significant increase in transport network in urban and regional areas. A number of studies have been undertaken to examine whether transport improvement impacts commercial property values and have found that proximity to public transits leads to an increase in rental values of commercial properties. Few studies, however, have focused on investigating the relationship between change in accessibility and commercial property values with a longitudinal analysis. This study therefore seeks to investigate how change in accessibility impacts commercial property retail values. A gravity-type accessibility indicator will be developed in order to enhance the measurement of accessibility in the analysis. This accessibility will gauge accessibilities of commercial properties to the market potential for two time points: 2000 and 2010. Drawing on that accessibility indicator and commercial property attributes collected from private companies, this study will develop a longitudinal econometric model to analyze the impact of the change in accessibility on commercial property rental values. A hypothesis to be tested is that an increase in accessibility does not lead to a rise in rental values of commercial properties. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_325&r=tre |
| By: | Ashiya, Noriko |
| Abstract: | In literature, it is accepted as fact that compulsory purchase and compensation problems are associated with the level of infrastructure development; this paper will try to link these compensation problems and the level of infrastructure development. For this purpose, firstly, it will formulate the benefits accrued to society as a result of various developments; it will use the model to theoretically investigate the condition under which those benefits will be maximized. Secondly, it will employ a data set from Japan as one of the examples of developed markets to reveal the empirical facts and problems on infrastructure developments in countries with quite high levels of inventories of roads, railways or means of transportation. Theoretical findings will be consistent with price premiums in cases of compulsory purchase, where loss of ownership, livelihood, or violation of right of land owners become issues; they also will reveal an issue concerning the optimal level of inventories for infrastructure, which this paper will also examine in the second part. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_28&r=tre |
| By: | Wojewnik-Filipkowska, Anna; Raaja, Alasad |
| Abstract: | Transportation infrastructure is an essential component of our physical environment. This article is primarily about investigating public-private partnership in motorways in order to understand the potential for its application, improvement, and secondarily about comparing public-private partnership in transportation sector in United Kingdom and Poland. The research takes a qualitative approach focusing on the process of project organisation, financing, realisation and functioning. The governance process is analysed to define main actors, the rules they interact with and their rationalities to participate in the project. This analysis includes locality-specific regulations review, literature study, case study documentation investigation and finally interviews with key informants. The case studies analysis is undertaken against the background of a survey of public-private partnership in transportation in UK and Poland. The results of the study can be useful for public managers and private investors. The main conclusion of the research is that the different countries, different legal and financial determinants lead similarly to public-private cooperation, however the detailed solutions have been different. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_153&r=tre |
| By: | Gomes, Sandra Vieira |
| Abstract: | The objective of this paper is to provide an empirical analysis of the influence of traffic noise has on the housing market. Traffic noise can be considered as an environmental externality from road transport system. As so, it affects the value that people are willing to pay for their houses. The value of this effect has already been studied by some authors, with Stated Preference-choice (SP-choice) methods, the hedonic pricing model, or others. The approach used in this study combines traditional methods, namely linear modelling techniques used for quantifying the effect on housing prices fluctuation, with newer methods as the spatial analysis associate d to Geographical Information Systems. There are obvious advantages to a GIS in adding spatial analytical capabilities in terms of increasing its functionality and meeting a demand for systems that do something beyond storing, retrieving and displaying large amounts of information. This study was developed for the city of Lisbon, Portugal. A geographical database was created combining information from the Census, on the housing characteristics, with renting and sales activities. This study applies spatial auto-correlation techniques to analyze the relation between traffic noise and the variation on the housing value in Lisbon, and aims to contribute to the scientific knowledge of housing market in Lisbon, with detailed and accurate information on the factors affecting its variation. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_92&r=tre |
| By: | Kashyap, Anil; Berry, Jim |
| Abstract: | Infrastructure provision is a multidimensional problem for governments and businesses globally. Decades of under-investment within developed economies combined with an insatiable appetite for infrastructure within emerging economies has culminated in an infrastructural deficit estimated at circa US$50 trillion over the next 25 years (Ernst and Young, 2010). The scale of the global infrastructural investment challenge markedly exceeds public sector capacity. Indeed, a central theme of national government policies pertaining to infrastructure provision has been premised upon partnership based procurement. Central to the expansion in partnership-based procurement has been the international roll-out of the Public Private Partnership (PPP) model, which has now been adopted in more than 40 countries around the world. Within emerging economic markets partnership models are being widely used in the development of transport related infrastructure including roads and ports (air and sea) as well as energy provision. However, investors in complementary sectors such as health and education are using core infrastructure to hedge risk relative to the returns offered in traditional asset classes. This paper utilises synthesis of structured interviews from financial institutions, (banks, private equity and debt funds), policy makers and infrastructure development companies. Infrastructure Journal (IJ) data will also be used to analyse the financial structure (debt-equity ratios) and risk-return characteristics of partnership models globally across the different stages of the infrastructure provision at pre-development, development and post-development stages. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_196&r=tre |
| By: | Theisen, Theis; Emblem, Anne Wenche |
| Abstract: | How do residential property prices respond to new highway connections? We explore the impact of reduced travelling time on house prices in four different cities along the southern coast of Norway. The four towns are located as nodes on a chain, where the town of Kristiansand is located in one end of the chain-of-towns. In 2009, a new highway was opened between Kristiansand and three other towns east of Kristiansand. The three towns are located in increasing distance from Kristiansand. The new road substantially reduced the travelling time between the four towns. We use hedonic price functions estimated on the basis of sales data for dwellings in the period before and after the opening of the new highway and examine the impact of the new road on house prices. The fact that the four towns are located as nodes on a chain along the coast, with sparsely populated rural areas inland and between the towns, makes our case particularly suitable for studying the impact of a new road.We hypothesize that the new road reduced housing prices in Kristiansand, which is the largest of the four towns, and increased housing prices in the other three towns. We find that the house prices in Kristiansand increased only 14 per cent over a four-year period, while the increase was about 25 per cent for the other towns. We examine the robustness of our results by considering alternative explanations for the house price changes. We also examine the robustness of our findings by considering the development of house prices in a different town located west of Kristiansand and not directly affected of the new highway. We conclude that a the new and improved highway lead to a substantially stronger price increase in the smaller towns benefitting from better road connection to the larger town Kristiansand. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_48&r=tre |
| By: | Kashyap, Anil; Berry, Jim; Haran, Martin |
| Abstract: | Infrastructure provision is a multidimensional problem for governments and businesses globally. Decades of under-investment within developed economies combined with an insatiable appetite for infrastructure within emerging economies has culminated in an infrastructural deficit estimated at circa US$50 trillion over the next 25 years (Ernst and Young, 2010). The scale of the global infrastructural investment challenge markedly exceeds public sector capacity. Indeed, a central theme of national government policies pertaining to infrastructure provision has been premised upon partnership based procurement. Central to the expansion in partnership-based procurement has been the international rollout of the Public Private Partnership (PPP) model, which has now been adopted in more than 40 countries around the world. Within emerging economic markets partnership models are being widely used in the development of transport related infrastructure including roads and ports (air and sea) as well as energy provision. However, investors in complementary sectors such as health and education are using core infrastructure to hedge risk relative to the returns offered in traditional asset classes.This paper utilises Infrastructure Journal (IJ) data to analyse the financial structure (debt-equity ratios) and risk-return characteristics of partnership models globally across the different stages of the infrastructure provision at pre-development, development and post-development stages. Furthermore, the paper will examine key market dynamics within developed nations vis-a-vis emerging economies in terms of the volume of deals reaching financial close as well as highlighting trends in terms of the cost of debt pre and post financial crisis and how this has served to impact on deal size. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_293&r=tre |
| By: | Tan, Qile; Dimovski, Bill |
| Abstract: | This study investigates the underpricing of 154 infrastructure IPOs in China from 1993 to 2012. It follows infrastructure IPO studies in Australia and India which report average underpricing returns to subscribers of 3.5% and 25.4% respectively. The average underpricing return for Chinese infrastructure IPOs is substantially higher at 91.1% but interestingly substantially lower than the underpricing of Chinese IPOs generally. The issue size, the offer price, the time delay to listing and the broad market return from the date of the prospectus to the date of listing are helpful in explaining the underpricing of Chinese infrastructure IPOs. Government ownership retention and underwriter reputation do not appear to have much explanatory power. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_74&r=tre |
| By: | Chiang, Ying Hui |
| Abstract: | Many previous studies have shown that the Mass Rapid Transportation system has a positive impact on property prices due to its availability. But this impact reduces as distance from the station increases. The pattern of the change between different stations in different locations has not been fully discussed. Additionally, most of the studies usually ignored spatial interdependence among regions. Coupled with the advancement in geographical information system and the proliferation of spatial data, Real estate researchers have demanded advanced spatial analysis tools.This paper collects the data from 11,509 house transactions during 2007to 2008, which are near the Taipei Mass Rapid Transportation system within the radius of 1 km, to examine the impact of Mass Rapid Transportation system on metropolitan housing prices in different locations. We classify locations of the samples into CBD, CBD fringe, and suburbs in the metropolitan area. And then the types of stations are divide into two types, single-line station and multi-line station.This research uses spatial econometrics to estimate a residential housing model that includes cross-region interdependence. The empirical results find the price effect of distance from the MRT station is nonlinear. This effect tends to be stronger at certain distance intervals. The effect of MRT stations between urban and suburban areas is pronounced. The effect tends to get stronger in certain area, the closer the property lies within to the suburbs area the greater the effect is. Also, we find price gaps between different metro station types. Multi-line stations have greater positive effect on residential price. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_297&r=tre |
| By: | Cheng, Yu-Chun; Lin, Jen-Jia |
| Abstract: | The previous studies applied the transaction price to explore the relationship between job accessibility and housing cost and concluded that transaction price and job accessibility are positively correlated. After The Financial Tsunami in 2008, investors turned their capital to more stable investment targets, which include real estate markets, and have resulted in elevated property prices worldwide in recent years. Consequently, house rentals have been getting more important while have not been well explored before. To fill the research gap, this study empirically investigates the job accessibility effects on apartment rentals using sample data in Taipei, Taiwan.This study examines the effects of job accessibility on apartment rentals for different markets, which include building types, and apartment types, and for different transportation modes. There are five hypotheses examined in this study: H1: job accessibility positively affects apartment rentals; H2: the effects of job accessibility on apartment rentals are different among various transportation modes; H3: the effects of job accessibility on apartment rentals are different among various building types; H4: the effects of job accessibility on apartment rentals are different among various property types; and, H5: the effects of job accessibility on apartment rentals are different among various rentals. To examine the hypothesis, this study employs a gravity-type job accessibility index and uses 9,157 observations in Taipei metropolitan area in 2009 as the study sample. The linear regression and quantile regression are both used to analyze the sample data.The results show that job accessibility is positively associated with apartment rentals. And, different building types and property types have different effects of job accessibility on apartment rentals. Also, different accessibility of transportation modes have different effects on apartment rentals. Furthermore, the accessibility effects on low rentals are significantly larger than that on high rentals.The empirical findings of this study make two important contributions to the literatures. First, this study presents new evidence regarding the effects of job accessibility on apartment rentals. Previous studies focused on transaction prices instead of rentals. Second, the findings of the present study provide a reference for governments in developing housing strategies using land-use and transportation measures. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_53&r=tre |
| By: | Park, Abraham; Chang, Chen Yu |
| Abstract: | With the growing strains on public resources, many governments in recent years have turned to the private sector for infrastructure project financing. The special purpose vehicles (SPVs) taking such project usually has a 2 stage business model: a construction stage followed by an operating stage. However, the project risk in stage 1 is very high, and in most cases, the impacts of specific construction events on project risk and capital cost are unobservable due to lack of informational transparency. Eurotunnel (the Channel Tunnel project) is unique in that the share price data for the entire construction period is publicly available. The goal of this paper is to contribute to the measurement and assessment of project risk by providing empirical data on the impact of various events that occur during the construction phase of the project finance company's life. Using the event study methodology, our study shows that: (1) during the construction stage, efforts to better manage the interests and incentives of contractors produce more significant positive impact from investors than efforts for cost containment; (2) during the construction stage, meeting the project deadline is a higher investor priority than containing construction cost; and (3) once the construction phase is complete, the investors' priority then becomes the overall cost and the impact of construction events on the expected returns from investment. Finally, the level of risk and the potential conflicts of interest that arise during the construction phase of a mega infrastructure project are such that turning to IPOs to provide equity capital may not be appropriate. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2013_97&r=tre |
| By: | Jones, Colin; Gormans, Friedrich; Dunse, Neil |
| Abstract: | This paper will question whether traditional cost approaches apply to the valuation of an airport now that they are no longer public utilities but very much commercial enterprises. In doing so, the research explores the business model, the ownership and the importance of non-aviation business for an airport. It will examine the principles of company valuation and International Accounting Standards in determining an airport’s value and argue that an airport can be viewed as a specialist property company consisting of a series of separable components which can be valued using common property valuation methods based upon value rather than cost. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2014_89&r=tre |