Abstract
The purpose of this research is to estimate the effects of highway development projects on the price of housing. Transportation development projects, highways in particular, improve a certain area’s accessibility but also increase its levels of exposure to traffic intensity and noise pollution. These externalities are evaluated by homeowners and residents and are reflected in the price of housing. In this paper, we use several repeat sales model specifications, including difference-in-differences estimators, and control for neighborhood effects to examine housing price trends in the municipalities around two newly developed highways in the Netherlands. The results of the research demonstrate that changes in accessibility result in a significant positive effect on the price of housing in nearby municipalities, but that increased noise pollution and traffic intensity levels result in a decrease in prices. The findings also confirm that combining the total effects of all externalities, the effect of highway development on the price of housing is generally positive, and this effect is salient even before the project is completed due to public anticipation effects.
Highlights
Transportation infrastructure development is undertaken to improve accessibility at a regional or urban level and to relieve traffic congestion in these areas
The results of the research demonstrate that changes in accessibility result in a significant positive effect on the price of housing in nearby municipalities, but that increased noise pollution and traffic intensity levels result in a decrease in prices
In the scope of the analysis, we focus on three main transportation development externalities: improved accessibility, increased traffic intensity and reduced noise levels
Summary
Transportation infrastructure development is undertaken to improve accessibility at a regional or urban level and to relieve traffic congestion in these areas. This development is evaluated by property owners and residents in the affected areas, and is capitalized in the price of housing. We first ask how infrastructure development is valued by owners and residents of the region’s municipalities, and how they value the changes in the levels of each externality In addressing this question, we estimate the elasticity of housing prices with respect to changes in accessibility, traffic intensity and noise pollution levels, and calculate the implicit willingness to pay (WTP) for changes in the levels of these externalities. The seventh section includes a conclusion and discussion regarding possible policy applications
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
