THE IMPACT OF 2008 BEIJING OLYMPICS ON HOUSING CONSUMPTION: A CONTINGENT VALUATION APPROACH

Abstract

There is a rich body of literature studying the effects of Mega-events (i.e., major sporting spectacle and cultural events) on economic development and environmental improvements in the host cities. Evidences are also found that Mega-events can enhance national pride and bring other intangible benefits. This paper adds to the literature by investigating public voice/perception about mega-events' impacts on their living quality from aspects such as urban infrastructure, housing condition and environment. The Contingent Valuation method is adopted in this study to test the hypothesis that the Beijing 2008 Olympics brought both tangible (e.g. transport accessibility) and intangible (e.g. better air quality) benefits to Beijing residents. Willingness to pay (WTP) models are constructed to quantify and contrast the responses from the public and private housing sectors. Our results show that, overall, 78.4% of respondents were willing to pay a premium for the improvement of their living quality as a result of hosting the Olympics. Residents from public and private housing sectors placed different values on the Olympics' tangible and intangible benefits. Respondents' demographic characteristics also influenced their WTP, although the effects vary between the two sectors. Our findings provide new evidences of the positive impact of hosting Olympic Games. To better promote and prepare for Mega-events, policy makers and private investors should recognize and address different needs from the public and private sectors.