Does High-Speed Rail Increase the Urban Land Price in China: Empirical Evidence Based on Micro Land Transaction Data

Abstract

This study examines the impact of high-speed rail (HSR) on the urban land price in China. The empirical results show that the average land price increases between 7 and 9 per cent when HSR is introduced, while the influence varies by land use types. The price of residential and commercial land is found to increase by 30 and 16 percent respectively, whereas price of industrial land is found to decrease by 30 percent, ceteris paribus. The evidence also confirms that local governments fiscal revenue greatly expands due to the induced land transactions as a result of HSR development.