Accessibility-based premiums and proximity-induced discounts stemming from bus rapid transit in China: Empirical evidence and policy implications

• Published in: Sustainable cities and society 2019-07, Vol.48, p.101561, Article 101561
• Main Authors: Yang, Linchuan, Chau, K.W., Chu, Xiaoling
• Format: Article
• Language: English
• Subjects: Accessibility; Bus rapid transit (BRT); Hedonic pricing model; Housing price; Property price; Proximity; Spatial econometric model; Urban China
• ISSN: 2210-6707; 2210-6715
• DOI: 10.1016/j.scs.2019.101561

•Effects of accessibility to BRT stations and proximity to the BRT corridor on property prices in a Chinese city are simultaneously evaluated.•Accessibility to BRT stations is positively related to property prices, while proximity to the BRT corridor is negatively associated with the prices.•BRT provides higher accessibility benefits in peripheral areas, compared with central areas.•Many policy implications, such as value capture and reducing the negative externality of BRT corridor, are discussed. Bus rapid transit (BRT) is popular worldwide because it provides high-quality transit services at low costs. China is not an exception in this regard, and it tops the world rankings in BRT network expansion rate. Many studies conducted in the West have shown that BRT accessibility has a positive impact on nearby property prices (accessibility effect). Comparatively, few studies have been conducted in urban China. Moreover, there are even fewer empirical studies on the undesirable factors associated with proximity to the BRT corridor, such as noise, air pollution, and unpleasant visual scenes (proximity effect). Based on 16,165 housing samples in Xiamen (China), we estimated a set of, non-spatial and spatial, hedonic pricing models to simultaneously investigate the accessibility and proximity effects of BRT and tested whether or not accessibility-based premiums and proximity-induced discounts coexist in the housing market. Empirical results of this study suggest that: (1) accessibility to BRT positively affects nearby property prices; (2) proximity to the BRT corridor negatively affects property prices; and (3) accessibility to BRT has a stronger positive impact on property prices in peripheral areas than in central areas. Though the first outcome has been well recognized, the other two have rarely been studied in existing literature, thereby representing the potential contributions of this study. Finally, we proposed policy implications from these results.