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- W228087098 abstract "Improvements to transportation networks, especially those in growing areas, tend to have impacts on local land markets. In principle, an improvement to a link in the network will confer economic benefits to adjacent and nearby properties. Depending on the type of improvement (construction of a new link, capacity addition to an existing link, or upgrading an existing link), the benefit could represent a reduction in the time cost of travel or other variable costs (fuel consumption or mileage-related vehicle depreciation). Urban economic theory would suggest that these benefits are capitalized into local property values, yielding a localized spillover benefit. This paper will explore the nature and magnitude of benefits accruing to nearby properties that arise from major highway construction or reconstruction projects, more precisely those that add capacity to an existing facility. Using a sample of property sales data for Minnesota (MN) counties from 2000 through 2007, we will explore the impacts of upgrading roads on nearby properties of varying type (residential, commercial) by fitting empirical models that predict the price of a given property as a function of structural, location and other relevant characteristics. We find that residential properties benefit from being near an access point on an improved highway, but are negatively affected by being near the facility itself. Our analysis of the ROC 52 reconstruction project in Rochester, MN, also reveals some evidence of a localized benefit for owners of commercial and industrial property near the improved highway in the years following construction." @default.
- W228087098 created "2016-06-24" @default.
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- W228087098 date "2009-01-01" @default.
- W228087098 modified "2023-09-27" @default.
- W228087098 title "Highway Capacity Improvements and Land Value Responses: Some Estimates of the Economic Impacts of Upgrading Roads" @default.
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