Do Bicycle Networks Have Economic Value? A Hedonic Application to Greater Manchester

Hearne, David and Yerushalmi, Erez (2023) Do Bicycle Networks Have Economic Value? A Hedonic Application to Greater Manchester. Working Paper 24. Centre for Applied Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.

Manuscript_ 20231212_Hearne and Yerushalmi - WP24 - Value of bicycle networks in Greater Manchester.pdf - Published Version

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This paper quantifies the association between proximity to bicycle networks and house prices in Greater Manchester using hedonic and spatial regressions. Given the challenges of congestion and pollution, many cities across the world are implementing policies to improve bicycling facilities and other active modes of transport. Bicycle lanes are a solution that could potentially provide significant amenities to residents, but they require investment and the appropriation of limited land. Drawing on a large dataset of approximately 253,000 transactions, over a 9-year period, we find that a 1 km reduction in distance to the nearest bicycle network is associated with property values being around 3.2% higher, on average, and 7.3% higher in the central borough of Manchester. We also provide an applied example to rank new bicycle routes by comparing their benefit-to-cost ratios.

Item Type: Monograph (Working Paper)
Identification Number: 24
7 November 2023Submitted
Subjects: CAH00 - multidisciplinary > CAH00-00 - multidisciplinary > CAH00-00-00 - multidisciplinary
CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics
CAH15 - social sciences > CAH15-03 - politics > CAH15-03-01 - politics
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School > Centre for Accountancy Finance and Economics
Depositing User: Gemma Tonks
Date Deposited: 13 Nov 2023 16:20
Last Modified: 13 Dec 2023 13:28

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