01476884

Component

This paper estimates the effect of highways on land prices using the implementation of the west branch of a large beltway around Sao Paulo Metropolitan Area. This is a unique opportunity since the beltway is being implemented by branches. So, it is possible to use the zones surrounding the branches where construction has actually started as a treatment group to be compared with zones surrounding branches for which construction has not started yet. Since the authors have a proxy for land price data before and after construction, it is possible to estimate the impact by difference-in-difference. The evidence is that there are significant and asymmetrical effects caused by the highway construction. Parcels located close to ramps outbound of the track observed an increase in price faster than similar zones close to other (planned) branches. For parcels located inbound of the beltway, relatively far from the track (between 2.5 km and 5 km), the effects of construction and delivery/operation faced a (relative) decline in land prices. These results have consequences for transportation finance; betterment levies and value capture taxes; urban form and welfare.

This paper was sponsored by TRB committee ADD10 Transportation and Economic Development.

01470560

13-4528

English

26p

2013

Transportation Research Board 92nd Annual Meeting

Digital/other

Appendices; Figures; Maps; References; Tables

Beltways; Econometric models; Economic impacts; Land use; Land values; Property values; Road construction; Urban development

Sao Paulo (Brazil)

Economics; Highways; I10: Economics and Administration

Transportation Research Board Annual Meeting 2013 Paper #13-4528

TRIS, TRB, ATRI

Feb 5 2013 12:52PM