Valuing Rail Access Using Transport Innovations
Paper No' CEPDP0611:
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Keywords: House Prices; Transport Innovations
JEL Classification: R4
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This Paper is published under the following series:
CEP Discussion Papers
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In this paper we implement a powerful empirical approach than has not previously been applied
to rail transport evaluation to ascertain how much consumers value rail access. We study the
effects on house prices of a transport innovation that altered the distance to the nearest station for
some households, but left others unaffected. The transport innovation we study is the
construction of new stations under improvements made to the London Underground and
Docklands Light Railway in South East London in the late 1990s. Using the innovation to
implement a quasi-experimental approach studying house price changes in affected versus
unaffected areas allows us to avoid the biases inherent in cross-sectional valuation work. Our
evidence on distance-station effects on prices suggests that rail access is significantly valued by
households and that these valuations are sizable as compared to the valuations of other local
amenities and services.