Valuing user external benefits and developing management strategies for metro system underground arcades

Abstract

Construction efforts in Japan and Europe indicate that metro system underground arcades ( metro malls) provide many positive externalities, including landscape preservation, passenger safety and comfort and efficient land usage. Given the extremely high construction costs of metro malls, a comprehensive cost and benefit analysis is essential to facilitate government and vendor investment in their development. A comprehensive benefit analysis not only contributes to project assessment, but also helps develop comprehensive strategies for designing and managing metro malls. This study takes the East Metro Mall in Taipei City as a case study. The user benefits of the East Metro Mall are evaluated by a questionnaire survey and contingent valuation. Using negative binomial regression to calibrate the bid function, this study demonstrates that metro malls provide most benefits for high-income users, females and special-purpose and passing-by shopping trips. The average willingness to pay to use metro mall is 13.76 Taiwan dollars (1 Taiwan dollar ≈ 0.03 US dollar in 2006) per use. The total user benefits of the East Metro Mall thus can be valued at 21.2 million Taiwan dollars annually. Finally, Based on the calibrated bid function, this study presents suggestions regarding the further development of the East Metro Mall. Four strategies are recommended, relating to two areas, namely services and pricing. These strategies can provide guidelines in planning other metro system underground arcades.