Zhang, Yi and Shing, Hui-Fai (2006): THE LONDON CONGESTION CHARGE AND PROPERTY PRICES: AN EVALUATION OF THE IMPACT ON PROPERTY PRICES INSIDE AND OUTSIDE THE ZONE.
Download (949Kb) | Preview
Congestion charging in London was introduced in February 2003 to reduce traffic levels in the centre of London. Postcode sector level property prices for sectors both inside and outside the zone are investigated under the premise that the benefits of transport innovation can be captured by property prices. If housing markets are efficient, residential property prices should capture all the benefits and costs to commuters that a location offers. The aim of this investigation is to firstly compare property prices inside and outside the congestion charging zone, and secondly to measure the sensitivity of house prices to distance from the zone boundary both inside and outside the zone. The main analysis is based on the quasi-experimental differences-in-differences approach. It is found that the gap between property price inside and outside the zone has actually reduced as a result of congestion charging. Also, after the implementation of the congestion charge, the sensitivity of house prices with respect to distance from the boundary has fallen for sectors inside the zone relative to sectors outside the zone.
|Item Type:||MPRA Paper|
|Institution:||London School of Economics|
|Original Title:||THE LONDON CONGESTION CHARGE AND PROPERTY PRICES: AN EVALUATION OF THE IMPACT ON PROPERTY PRICES INSIDE AND OUTSIDE THE ZONE|
|Keywords:||Congestion Charging; Property Prices; Difference in differences; Transport Innovations|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Production Analysis, and Firm Location > R31 - Housing Supply and Markets
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Systems > R41 - Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Systems > R48 - Government Pricing and Policy
|Depositing User:||Hui-Fai Shing|
|Date Deposited:||13. Jul 2007|
|Last Modified:||12. Feb 2013 06:00|
Bannister, D. (2003). ‘Critical Pragmatism and Congestion Charging in London’, International Social Science Journal. 176. Pp. 249-264
Bowes, D. and K. Ihlandfeldt (2001), ‘Identifying the Impacts of Rail Transit Stations on Residential Property Values’, Journal of Urban Economics, 50, 1-25.
DETR (1997). ‘Highways Economics Note No. 2’, Department of the Environment, Transport and the Regions.
Gatzlaff, D.H. and D.R. Haurin (1997). ‘Sample Selection Bias and Repeat-Sales Index Estimates’ The Journal of Real Estate Finance and Economics, Springer, 14, 33-50.
Gibbons, S. and S. Machin (2003a). ‘Rail Access and House Prices: An Evaluation of the Wider Benefits of Transport Improvements’, Department of Transport Report (November). Gibbons, S. and S. Machin (2003b). ‘Valuing English Primary Schools’, Journal of Urban Economics, Vol. 53 (2), 197-219. Gibbons, S. and S. Machin (2004). ‘Rail Access and House Prices: An Evaluation of the Wider Benefits of Transport Improvements’, CEP Discussion Paper CEPDP0611, Centre of Economic Performance, LSE.
GOL (2000). ‘Road Charging Options for London’, (March) Government Office for London.
Landis, J. and M. Zhang (2001). ‘Using GIS to Improve Urban Activity and Forecasting Models: Three Examples’, in Spatial Models and GIS, A. Stewart Fotheringham and Michael Wegener eds., GISDATA 7, Taylor-Francis, London
McDonald, J.F. and C.I. Osuji (1995). ‘The Effect of Anticipated Transportation Improvement on Residential Land Values’, Regional Science and Urban Economics, 25, 261-278.
O’Sullivan, A. (2003), ‘Urban economics’5th Edition, Boston : McGraw-Hill/Irwin
Prud’homme, R. and J.P. Bocarejo (2005) ‘The London Congestion Charge: A Tentative Economics Appraisal”, the PIARC Seminar on Road Pricing with Emphasis on Financing, Regulation and Equity, Cancun, Mexico
Perkins, S. (2004), ‘Charging For the Use of Roads: Policies and Recent Initiatives’, Fifth Annual Global Conference on Environmental Taxation Issues, Experience and Potential, Pavia, Italy, 9-11 September.