Impact of bus rapid transit on housing price and accessibility changes in Sydney: A repeat sales approach

ABSTRACT

New public transport infrastructure is expected to improve accessibility for local residents, and thus contribute to increased land value. The contribution that a bus rapid transit (BRT) system can make to increased land value is less certain than for rail-based systems, with the literature mostly containing bus-based examples from developing countries with extensive BRT networks. This article considers a BRT system named the Liverpool–Parramatta Transitway (LPT) that was implemented in southwestern Sydney in 2003 to improve public transport accessibility in the local area. A repeat sales model is constructed to investigate the impact of the LPT on residential housing prices and accessibility changes using repeat sales data from before and after the opening of the LPT. This identified little price difference between properties close to LPT stations and outside of the area that could be considered as affected by the LPT service coverage. This outcome is at variance with the theoretical underpinning of land value uplift and other empirical evidence relating to the LPT. Hedonic models using the same repeat sales data investigate the study area in more detail, stratifying the sample by housing type and by comparing separate before and after models. These research outcomes identify the extent to which the BRT system has an impact on local housing prices through accessibility improvements to the study area and provide a deeper understanding as to how the quantification of land value uplift from BRT represents one element of the wider economic benefits of a BRT system.     

Impact of bus rapid transit on residential property prices in Auckland,New Zealand

Dubbed ‘The City of Cars’, congestion is a prominent issue in Auckland, New Zealand. Auckland's first Bus Rapid Transit (BRT) system - the Northern Busway - was implemented in 2008. The 6.2-km (km) busway network services the northern suburbs and provides a link to the Central Business District (CBD). This research aims to assess the impact of the Northern Busway on nearby residential property values. Spatio-temporal autoregressive (STAR) modelling is used to examine the accessibility impacts of the BRT under the difference – in – differences (DID) framework alongside a typical OLS and a strictly spatial model. We have observed two main findings. Firstly, the average sale price for properties in the treatment group (within 800 m of the Northern Busway) increased by approximately 3.69% as a result of the opening of the Northern Busway. Second, consistent with previous literature, we find that OLS estimates suffer from high spatial autocorrelation bias, while co-integrating spatial and temporal dependencies within a STAR model improves the precision of estimation. While the models produced a relatively modest accessibility premium on house prices, given traditional importance of private cars coupled with high income levels in the case study area, it would take a generational shift to make a significant impact on house prices as the area becomes more desirable due to reduced traffic congestion/travel time.     

Residential property value impacts of proximity to transport infrastructure: An investigation of bus rapid transit and heavy rail networks in Brisbane,Australia

Public transport investment is normally targeted at increasing accessibility which land rent theory identifies and will in turn increase land values. There is a clear policy interest in how much land values increase following a new transport investment so as to establish if there is sufficient land value uplift to capture and to help pay or contribute to investment plans. Identifying an uplift for residential land has been well studied in the context of new light rail systems and bus rapid transit (BRT) systems in developing countries but there is little evidence for BRT in developed countries.This paper has two objectives. First, to examine long term impact of BRT in a developed world context in Brisbane, Australia. Brisbane's BRT uses an open system design which contrasts with the closed system design of the successful BRT systems in South America and elsewhere, including the BRT in the suburbs of Sydney, Australia. Second, BRT in Brisbane was introduced to a network already dominated by a radial heavy rail network and this investigation recognises that the uplift from BRT introduction may therefore be different to a BRT in a single mode city. A third motivation is to consider the spatial distribution of uplift which is an essential pre-requisite to understanding the distributional impact if uplift is used to contribute to infrastructure provision.Spatial modelling is used to examine the accessibility impacts of the BRT at a global level. This is followed by Geographical Weighted Regression, used to examine the spatial distribution of accessibility using a local model.The results show that there is greater uplift in Brisbane, as compared to that identified by studies of Sydney's BRT which is likely due to the greater network coverage of BRT in Brisbane and less strong competition of rail. Land value uplift is also spatially distributed over the network giving higher uplift in some areas than others and lower values than typically found with rail based systems in developed countries. However, the degree of uplift is relatively low, with proximity to BRT stations attracting more uplift than proximity to train stations.     

Redistributive effects of bus rapid transit (BRT) on development patterns and property values in Seoul, Korea

This study investigates the redistributive effects of Seoul's bus rapid transit (BRT) system on development patterns and property values using an urban simulation model. The Seoul Metropolitan Integrated Urban Model (SMIUM) combines the Seoul metropolitan input-output model with random utility-based location choice models and endogenous real estate markets.The major findings of this study can be highlighted as follows. First, Seoul's BRT contributes to increased development density in urban centers, acting as a centripetal force to attract firms from the suburbs into urban cores and supporting arguments for Smart Growth proponents. Second, unlike its redistributive effects on nonresidential activities, the BRT has a limited effect on the redistribution of residential activities, implying that residential locations are less sensitive to accessibility improvements made by the BRT than are nonresidential locations. Third, reflecting the transferred space demands from the suburbs to the urban cores, the CBD reaps the highest property value gains, while all of the outer ring zones suffer from reduced property values.     

Understanding bus rapid transit route ridership drivers: An empirical study of Australian BRT systems

Bus Rapid Transit (BRT) systems are an increasingly popular public transport option internationally. They provide rail-like quality for bus services for a fraction of the cost of fixed rail. Many claims of high and increasing ridership have resulted from BRT system development; however, it is unclear exactly which aspects of BRT system design drive this. This paper explores whether BRT design features, among other influences, significantly increase ridership above and beyond the impact of service levels. It does so using a series of regression models undertaken on 77 BRT and non-BRT bus routes in Australia which is known for its diversity in BRT route design. Explanatory variables used included service level, frequency, speed, stop spacing, share of segregated right of way, vehicle accessibility, employment and residential density, car ownership levels and BRT infrastructure quality. Five models explored the role of these variables. Two models found that service level dominates predictions of boardings per route km although they suffer from endogeneity. Further models control for this influence by modelling boardings per vehicle km. Overall results suggest that some BRT infrastructure treatments such as right of way have a significant impact on ridership but the influence of infrastructure is within the context of high service levels. The role of accessible vehicles has also been highlighted in this research, although more research is needed to clarify this influence. The paper concludes with a discussion of the various influences on ridership and recommendations for existing policy and future research.     

The equity impacts of bus rapid transit: A review of the evidence and implications for sustainable transport

The paper offers an analysis of empirical evidence on the equity impacts of operational Bus Rapid Transit (BRT) systems in the Global South. The focus is on vertical equity, i.e. whether BRT systems achieve progressive benefits for poorer segments of the population. Findings from Africa, Asia, and Latin America all suggest that BRT does offer significant benefits to low-income groups, in terms of travel time and cost savings, access enhancement, and safety and health benefits. However benefits are often skewed toward medium-income users and thus less progressive than they might be. Two primary reasons for this are insufficient spatial coverage and inappropriate fare policies. While many features of BRT potentially allow it to deliver pro-poor outcomes, such outcomes only materialize if BRT implementers pay specific and sustained attention to equity. The paper identifies key issues that need to be addressed to steer BRT implementation toward more socially sustainable outcomes—including better integration with other transit, paratransit, and nonmotorized transport services, and with the housing sector.     

Long-term impact of network access to bike facilities and public transit stations on housing sales prices in Portland,Oregon

Planners and economists generally accept that housing market values increase with proximity to transportation facilities through the provision of improved access to activity locations. While the market benefits of rail station access are well-documented, inconsistent and insufficient methods have led to limited agreement on the true value associated with this locational amenity. Far fewer hedonic price studies have assessed the influence of bike facility access on housing sales prices, and those that have generally analyze cross-sectional data. In this study, we estimated a spatial hedonic model using a bootstrapped pseudo panel to determine the joint impact of network proximity to bike lanes and off-street multi-use paths, as well as light rail and streetcar stations, on housing sales in Portland, Oregon, from 2002 to 2013. Our findings revealed housing sales prices increased as network distance to the nearest light rail transit and streetcar station decreased. Likewise, owner-occupied single-family and multifamily housing sales rose in conjunction with reduced street network access to regional multi-use bike paths; however, improved proximity to on-street bike lanes negatively affected housing values. In sum, we believe these findings may help to inform non-automotive transportation infrastructure financing mechanisms that rely on rising property values.     

Spatial inequality of bus transit dependence on urban streets and its relationships with socioeconomic intensities: A tale of two megacities in China

The dependence of urban bus transit on their covered streets is expected to be significant and heterogeneous in megacities. Using a bipartite network approach, we develop several weighted centrality-based connectivities to quantify the degree of dependencies of urban bus transit on streets. Two megacities with different road patterns, i.e., Beijing and Shanghai in China are taken as examples to depict comparatively spatial inequalities of the centrality-based dependencies at both local and global scales. Then, a series of spatial cross-section regression models are introduced to explore the colocation relationships between the dependencies of bus transit and urban socioeconomic intensities. The methodology of kernel density estimation (KDE) is used to convert all data with different scales into the same unit of measurement. Results indicate that there are significant statistical and spatial inequalities of the centrality-based dependencies of bus transit on urban streets. These inequalities with evident hierarchies, variances and clusters were validated by statistical analysis including power-law function, rank-size distribution, multiple variance indices, together with Global Moran's I. Besides, a majority of bus transit rely heavily on minor streets concentrating on circumferential expressways in central urban areas and radial highways oriented to outer suburbs under industrial or residential suburbanization. The unequal distribution is found to be strongly related to population, nighttime light intensity, transport-related services, and commercial and leisure services by the spatial regression models. A good spatial matching between bus routes' dependencies and socioeconomic activities intensities is found both in these two megacities.     

Combined impacts of highways and light rail transit on residential property values: a spatial hedonic price model for Phoenix,Arizona

This study analyzes the positive and negative relationships between housing prices and proximity to light rail and highways in Phoenix, Arizona. We hypothesize that the accessibility benefits of light rail transit (LRT) and highways accrue at nodes (stations and highway exits specifically), while disamenities emanate from rail and highway links as well as from nodes. Distance decay of amenities and disamenities is captured using multiple distance bands, and hypotheses are tested using a spatial hedonic model using generalized spatial two-stage least-squares estimation. Results show that proximity to transport nodes was associated significantly and positively with single-family detached home values. As a function of distance from highway exits and LRT stations, the distance-band coefficients form an inverted-U pattern consistent with a positive longer-range distance–decay accessibility effect minus a smaller and shorter-range distance–decay disamenity effect. The positive accessibility effect for highway exits extends farther than for LRT stations. Coefficients for the distance from highway and LRT links, however, were not significant. We also test the effect of highway design on home values and find that below-grade highways have relatively positive impacts on nearby houses compared to those at ground level or above.     

Uncovering the spatially heterogeneous effects of shared mobility on public transit and taxi

A Mixed Geographically Weighted Regression (GWR) model is applied to explore the effects of shared mobility trips on taxi and public transit ridership at the macro-level. Several essential variables, including socioeconomic, transportation, network, and land use data, are set as the causal factors. The experiment is conducted using the smart card data, vehicle GPS trajectories, and vehicle order data collected in Shenzhen City, China. We show that the Mixed GWR outperforms the basic GWR in model fitting and capturing the unobserved heterogeneity. The spatial analysis reveals that bike-sharing addresses the “last-mile” and “first-mile” problems to bus and metro in the urban periphery. It substitutes the bus and taxis in short-distance journeys in the city center. However, the over-placement of bike-sharing in some regions limits the flexibility of bike-sharing connections to the metro. In the city center, ride-hailing fills the gaps in bus coverage and competes with the metro. In the peripheral areas, ride-hailing replaces buses and improves the accessibility to metro stations. The transportation policy increases the cooperation between ride-hailing and taxis citywide, although competitions in few regions need to be solved. The abovementioned results provide policy suggestions to optimize the allocation of local transportation resources.     

Modelling and analysing effects of complex seasonality and weather on an area's daily transit ridership rate

Adverse weather is generally perceived as deterrent for public transit uses. This has also been highlighted in previous literatures. In contrary, our previous study found no association between weather and transit ridership while investigating the underlying temporal influences behind variation in daily ridership across the sub-tropical city of Brisbane, Australia. This contraindication led to the primary focus of this research. This research acknowledged that Inclusion of weather variables in conjunction with other relatively strong independent variables might result in washout of the weather effects on ridership. Variables such as rainfall do not recur on a daily basis throughout the year. Thus, generalising their effect on ridership with other independent variables that consistently influence ridership may create a similar problem. Hence, weather variables were converted into their normalised factors and combined with other independent variables while formulated the optimised the daily ridership rate estimation model. Several models were developed concerning various combinations of weather variables and through rigorous analysis it was identified that only the rain variable has noticeable effect on daily ridership. Evidently, this study functions as an update of our former study by directing towards a new approach to the analysis of the relationship between weather and transit ridership.     

The effect of LCC market entry on dominant FSC's price into long haul sector: A case of Norwegian competition on British Airways' prices on selected transatlantic routes

The concept of long-haul low-cost operations has become somewhat appealing in the airline industry in recent years. In Europe, the rapid expansion of low-cost carrier Norwegian that entered the long-haul markets from several large metropolises (London, Paris, Barcelona, etc.) imposed a burden of challenges to full-service carriers (FSCs). However, Norwegian operates a large portion of its long-haul service from London Gatwick by offering flights mainly on high-density routes. Although Norwegian's capacity and market shares on these routes are still at a low level mainly due to the carrier's “puppy-dog” strategy, it seems that its effect on British Airways, the dominant carrier on these markets, cannot be ignored. The purpose of the research is to examine the extent to which the presence of Norwegian affects the prices charged by British Airways on three selected high-density transatlantic routes performed from London area. The model applies simultaneous equation systems to determine how the emergence of Norwegian affects the price and the passenger volume of British Airways, as a traditionally dominant carrier, at the city-pair markets. The findings are consistent with the well-established view held in the literature, that a LCC's presence at a specific market would generally affect the incumbents to reduce their prices. Indeed, British Airways announced the capacity expansion as a counter-strategy to mitigate the competitive pressure induced by Norwegian and its affordable service.     

Role of user's socio-economic and travel characteristics in mode choice between city bus and informal transit services: Lessons from household surveys in Visakhapatnam,India

Informally operated paratransit or Intermediate Public Transport (IPT) systems provide demand responsive transit in many developing countries, often competing with formal public transport systems. Literature on the relative user characteristics of the two modes and their choice behaviour between the systems is limited. This article addresses the gap by presenting a methodology to derive a comprehensive understanding of socio-economic and travel demand characteristics of all transit users in a city. The household survey based data collection and analysis framework is demonstrated for the case of Visakhapatnam, a medium sized Indian city. The variables impacting users' choice between the formal and informal modes were derived through binary logistic regression. It was observed that gender, income and travel time have a significant influence on users' choice between the modes, with waiting time having the maximum impact on mode choice. Therefore, the high frequency services offered by paratransit attract users making shorter trips.     

Service quality and price perception of service: Influence on word-of-mouth and revisit intention

Drawing on an overarching framework of marketing theory, this study develops and tests an integrated model of service quality that explicates the affective mechanisms through which service quality is associated with price perception of service (e.g., monetary price and behaviour price), word of mouth (WOM) and revisit intention. In a sample of 484 low-cost airline passengers, we found service quality to be related to increased price perception of service as a result of increasing passengers' WOM, which also creates success in this regard by increasing their revisit intention. Moreover, it is not surprising that there was a positive relationship between service quality and WOM mediated by perceived value of monetary price. The theoretical and empirical implications of these results are discussed.     

The social aspect of residential location choice: on the trade-off between proximity to social contacts and commuting

Commuting has been found to be one of the least enjoyable activities. As it is a consequence of the choice of home and work location, the question arises as to how its disutility is compensated. Urban location theory suggests a compensation in the housing or the labor market. While this provides part of the explanation, individuals' personal networks may provide additional insights.Data from a social network survey were used to investigate proximity to social contacts as a factor in residential location choice.The results indicated that proximity to social contacts was an important factor and that it was traded off against commute time. The notion that the disutility of commuting is not compensated for may be a consequence of ignoring the effect of personal networks.The results contribute to the understanding of residential location choice and have implications for urban planning and policies that seek to reduce commuting.     

The role of airport proximity on warehouse location and associated truck trips: Evidence from Toronto,Ontario

This paper examines the two-way relationship between land use and transportation from the perspective of warehouses in the Toronto Census Metropolitan Area. A location choice model is first developed to reproduce the decision process of firms selecting suitable locations to operate warehousing facilities. The results highlight that transportation plays a prominent role in the location of warehouses with proximity to airport, highway infrastructure, and rail to a lesser extent. However, the proportion of industrial land use provides the largest role in the model suggesting that available land and zoning is the most important factor. This paper also studies the impact of warehouse location on freight transportation trips. The resulting analysis highlights that GPS derived trips arising from warehouses near a major airport in Toronto tend to travel 1.8 times further than trips pertaining to other warehouses in the region. This suggests that trips related to the airport are more likely to be connected to a larger supply chain process.     

Households transport-home energy conservation strategies in response to energy price policies: A stated adaptation experiment based on portfolio choices and cross effects designs

This article explores consumer investment choice in long-term energy conservation technology and assesses trade-offs in energy saving behaviour between the housing and transportation domains. The long-term energy conservation choice problem is conceptualized as a portfolio choice problem. Consequently, to measure trade-offs between investments in housing and transport options, a cross effects choice design is developed in which respondents were shown one or more alternate ways to reduce their current energy consumption: (1) investing in new technology in the house, such as solar panels; (2) exchanging the current car for a more energy efficient car; (3) buying a new energy-efficient car, such as EV or solar car; (4) moving house to reduce current travel distances. To help respondents linking these options to their current energy consumption, a new Web-based survey system (SINA) to implement and administer stated adaptation experiments was developed. The system was used to collect two sets of data. First, data about out-of-home and in-home energy consumption, together with detailed time use data, was collected. Second, using a cross effects design, respondents were asked to select a portfolio of energy-saving strategies in response to different energy pricing policy scenarios. Results reported in this paper are based on 572 respondents who completed the survey and responded to seven adaptation questions based on their current energy expenditures. A random parameters logit model is estimated to predict the probability of choosing a particular portfolio of energy-saving options. Estimation results indicate that individuals from different socio-demographic groups exhibit varied preferences. The saving option characteristics, especially cost related characteristics have significant effects on individuals' preferences. Moreover, the results also showed significant effects of choice set composition on energy saving options. Further, the energy pricing policies had showed mixed effects on individual's preferences.     

Analysis on bike-share ridership for origin-destination pairs: Effects of public transit route characteristics and land-use patterns

Studies on bike-share programs have dramatically increased during the past decades. While numerous studies have examined various factors affecting bike-share demand at the station-level, few attempts have been made to understand bike-share ridership at the origin-destination (OD) level due to technical difficulties. The objective of this study is to examine whether existing public transit characteristics affect bike-share ridership at OD-level. We combined three datasets: (1) bike-share ridership data, (2) land-use and bike-transit infrastructure, and (3) bike-transit route characteristics between OD pairs of bike stations. Zero-inflated negative binomial (ZINB) regression models were used for the analysis. Our results showed that the travel distance between OD bike stations, land-use compositions, and the existence of bike-friendly infrastructures were significant factors determining bike-share ridership at the OD-level. In particular, a longer duration of public transit trips than bike-share, and more transit transfers, were associated with bike-share ridership. Further, this study showed that bike-share and public transit might compete with or promote each other, even within the city. The study's findings suggest that the relative efficiency of bike-share compared to public transit is highly associated with bike-share demand and help to increase the utility of bike-share system in response to several limitations of existing public transit networks.     

Evaluation of land-use and transport network effects on cyclists' route choices in the Copenhagen Region in value-of-distance space

Growing interest in sustainable transportation systems has driven decision-makers toward policies and investments aimed at promoting cycling, but little to no effort has been made toward incorporating bicycle transport in transport planning models. This study contributes toward this direction by estimating a bicycle route choice model in value-of-distance space from a large sample of 3384 cycling trips that were traced with GPS devices in the Copenhagen Region. The novelty of this study lies in (i) observing cyclists' behavior in a cycling-oriented country, (ii) exploiting rich data about the cycling environment, (iii) estimating the model in value-of-distance rather than preference space, and (iv) not focusing only on preferences for traditional variables (e.g., distance, turns, hilliness, intersections, motorized road characteristics), but also on perceptions and preferences for bicycle facilities (e.g., bicycle lanes, bicycle paths, bicycle traces) and land-use designations (e.g., residential, industrial, sports, scenic areas). The findings from the model show that: (i) cyclists exhibit heterogeneous preferences for avoiding right and left turns, cycling the wrong way, using roundabouts and bridges, and cycling alongside residential and scenic areas; (ii) cyclists dislike cycling on unpaved and hilly surfaces and alongside larger roads; (iii) cyclists have clear perceptions about different types of bicycle facilities, with a preference for bicycle lanes and segregated paths; (iv) cyclists have clear perceptions about land-use designations, with a preference for cycling alongside sports and scenic areas; (v) time-of-day and air temperature contribute to the perceptions of cyclists and their preferences for bicycle facilities and land-use designations.     

The impact of service quality and price on passengers' loyalty towards low-cost airlines: The Southeast Asia perspective

The objective of this study is to examine the impact of service quality by adopting AIRQUAL model and price on passengers' loyalty through the linkage of passengers' satisfaction toward low-cost airlines from the perspective of Southeast Asia. With 200 questionnaires analyzed, the results suggest that service quality and price have a positive significant impact on passenger satisfaction, and as a result lead to passengers’ loyalty. Besides, the findings of this research also confirm the mediating role of customer satisfaction between service quality and loyalty, price and loyalty separately, which implies that customer satisfaction is a vital factor for an LCCs to survive in such a highly competitive aviation market.