The Amenity Value of Bicycle Infrastructure: A Hedonic Application to Greater Manchester, UK

Hearne, David and Yerushalmi, Erez (2024) The Amenity Value of Bicycle Infrastructure: A Hedonic Application to Greater Manchester, UK. Environmental and Resource Economics. ISSN 1573-1502

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Abstract

Using hedonic and spatial regressions, this paper estimates a significantly larger association between proximity to bicycle networks and property prices than previously reported. As cities face increasing challenges of congestion and pollution, many are implementing policies to integrate bicycle facilities and other active modes of transport. However, policymakers are slow to support these initiatives and remain skeptical due to the investment costs required and appropriation of limited land. Drawing on a large dataset of approximately 253,000 transactions in Greater Manchester, over a 9-year period, we find clear evidenced that a 1 km reduction in distance to the nearest bicycle network is associated with property values being around 2.8% higher, on average, and 7.7% 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 and a discussion on the property tax system.

Item Type:	Article
Identification Number:	10.1007/s10640-024-00936-0
Dates:	Date Event 14 October 2024 Accepted 14 November 2024 Published Online
Uncontrolled Keywords:	Amenity value, bicycling network, bicycle, bike, hedonic pricing, Greater Manchester
Subjects:	CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics
Divisions:	Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics > Centre for Accountancy Finance and Economics
Depositing User:	Gemma Tonks
Date Deposited:	23 Oct 2024 12:51
Last Modified:	18 Nov 2024 14:22
URI:	https://www.open-access.bcu.ac.uk/id/eprint/15927

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