BRT system in Bogotá and urban effects: More residential land premiums?

Document Type

Journal Article

Publication Date

2021

Subject Area

place - south america, place - urban, mode - bus rapid transit, economics - value capture, land use - impacts, land use - planning, planning - methods

Keywords

Land-use/transport planning, Land value, Local accessibility, Transmilenio, Urban development, Bogotá. JEL Classification R49

Abstract

The possible impact of Bus Rapid Transit (BRT) systems on land values remains the source of an interesting debate. Using a matching method known as Coarsened Exact Matching (CEM) in combination with detailed cross-sectional cadastral data, this study assesses the effects of Bogotá’s BRT infrastructure on residential land value, as well as effect heterogeneity according to socioeconomic characteristics, location and physical configurations of neighborhoods. Our results show that in low-income neighborhoods BRT has a positive effect on land value, likely because the benefits of proximity outweigh any inconvenience. In contrast, in medium- and high-income neighborhoods, the effect of BRT infrastructure on land value is not significant and, in some cases, even negative. The results are relevant for the debate on BRT impacts on residential land value and land value capture, especially now that the construction of a new BRT trunk line in the city is about to begin. The effects of BRT on the value of land can be regarded as positive (or negative) economic externalities of these types of projects.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Research in Transportation Economics Home Page:

http://www.sciencedirect.com/science/journal/07398859

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