IDEAS home Printed from https://ideas.repec.org/a/bla/asiaec/v37y2023i1p51-81.html
   My bibliography  Save this article

Rebuilding or refurbishing: Heterogeneity effects of urban renewal strategy

Author

Listed:
  • Fan Zhang
  • Xiuyan Liu
  • Songlin Li

Abstract

This study investigates the heterogeneous policy effects of urban renewal strategies in shantytown renewal in Beijing. Using the spatial difference‐in‐difference approach, this study identifies the renewal approaches for each shantytown to analyze how each strategy affects housing prices and population density within the policy target area and surrounding area. The empirical results suggest that current urban renewal actions in Beijing have not achieved the expected policy goals and imply significant heterogeneity between refurbishing and rebuilding shantytowns in improving building value. Rebuilding projects have positive renewal effects and externalities, driving housing prices to increase by 5.86%–7.25% within the shantytown and a 1‐km radius. Furthermore, the dynamic analysis shows that these impacts are prolonged, with housing prices maintaining an upward trend for 2–6 years after rebuilding. However, there is no causality between refurbishing dilapidated areas and increasing building values.

Suggested Citation

  • Fan Zhang & Xiuyan Liu & Songlin Li, 2023. "Rebuilding or refurbishing: Heterogeneity effects of urban renewal strategy," Asian Economic Journal, East Asian Economic Association, vol. 37(1), pages 51-81, March.
    • Handle: RePEc:bla:asiaec:v:37:y:2023:i:1:p:51-81
    DOI: 10.1111/asej.12289
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/asej.12289
    Download Restriction: no
    File URL: https://libkey.io/10.1111/asej.12289?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ooi, Joseph T.L. & Le, Thao T.T., 2013. "The spillover effects of infill developments on local housing prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 850-861.
    2. Douglas Noonan & Douglas Krupka, 2010. "Determinants of historic and cultural landmark designation: why we preserve what we preserve," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(1), pages 1-26, February.
    3. van Duijn, Mark & Rouwendal, Jan & Boersema, Richard, 2016. "Redevelopment of industrial heritage: Insights into external effects on house prices," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 91-107.
    4. Karl E. Case & Robert J. Shiller & Anne K. Thompson, 2012. "What Have They Been Thinking? Homebuyer Behavior in Hot and Cold Markets," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 43(2 (Fall)), pages 265-315.
    5. Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
    6. Du, Rui & Zheng, Siqi, 2020. "Agglomeration, housing affordability, and new firm formation: The role of subway network," Journal of Housing Economics, Elsevier, vol. 48(C).
    7. Schall, Lawrence D, 1976. "Urban Renewal Policy and Economic Efficiency," American Economic Review, American Economic Association, vol. 66(4), pages 612-628, September.
    8. Ahlfeldt, Gabriel M., 2011. "Blessing or curse? Appreciation, amenities and resistance to urban renewal," Regional Science and Urban Economics, Elsevier, vol. 41(1), pages 32-45, January.
    9. K. Chau & S. Wong, 2014. "Externalities of Urban Renewal: A Real Option Perspective," The Journal of Real Estate Finance and Economics, Springer, vol. 48(3), pages 546-560, April.
    10. Yingjie Zhang & Siqi Zheng & Yan Song & Yongguang Zhong, 2016. "The Spillover Effect of Urban Village Removal on Nearby Home Values in Beijing," Growth and Change, Wiley Blackwell, vol. 47(1), pages 9-31, March.
    11. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, June.
    12. Rosenthal, Stuart S., 2008. "Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal," Journal of Urban Economics, Elsevier, vol. 63(3), pages 816-840, May.
    13. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    14. T Akita & M Fujita, 1982. "Spatial Development Processes with Renewal in a Growing City," Environment and Planning A, , vol. 14(2), pages 205-223, February.
    15. Hirota, Shinichi & Suzuki-Löffelholz, Kumi & Udagawa, Daisuke, 2020. "Does owners’ purchase price affect rent offered? Experimental evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 25(C).
    16. Hyun, Dongwoo & Milcheva, Stanimira, 2019. "Spatio-temporal effects of an urban development announcement and its cancellation on house prices: A quasi-natural experiment," Journal of Housing Economics, Elsevier, vol. 43(C), pages 23-36.
    17. Grace Lee & Edwin Chan, 2008. "The Analytic Hierarchy Process (AHP) Approach for Assessment of Urban Renewal Proposals," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 89(1), pages 155-168, October.
    18. Qiao Wang & Xiuyan Liu & Fan Zhang & Tao Hu, 2022. "Subways and the Diffusion of Knowledge: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 60-99, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kanis Saengchote & Voraprapa Nakavachara & Yishuang Xu, 2023. "Capitalising the Network Externalities of New Land Supply in the Metaverse," PIER Discussion Papers 203, Puey Ungphakorn Institute for Economic Research.
    2. Kanis Saengchote & Voraprapa Nakavachara & Yishuang Xu, 2023. "Capitalising the Network Externalities of New Land Supply in the Metaverse," Papers 2303.17180, arXiv.org.
    3. Gonzalez Pampillon, Nicolas, 2019. "Spillover effects from new housing supply," LSE Research Online Documents on Economics 103446, London School of Economics and Political Science, LSE Library.
    4. Xizan Jin & Tachia Chin & Junli Yu & Yanjiang Zhang & Yingshuang Shi, 2020. "How Government’s Policy Implementation Methods Influence Urban Villagers’ Acceptance of Urban Revitalization Programs: Evidence from China," Land, MDPI, vol. 9(3), pages 1-19, March.
    5. Mark van Duijn & Jan Rouwendal & Richard Boersema, 2014. "Transformations of Industrial Heritage: Insights into External Effects on House Prices," Tinbergen Institute Discussion Papers 14-122/VIII, Tinbergen Institute.
    6. Gabriel Ahlfeldt & Kristoffer Möller & Sevrin Waights & Nicolai Wendland, 2012. "On prisoner's dilemmas and gilded cages: The economics of heritage preservation," ERSA conference papers ersa12p783, European Regional Science Association.
    7. Fan Yang & Peihong Tao & Xiao Cai & Jiayin Wang, 2022. "Transformation for Feature Upgrades or Higher Property Prices: Evidence from Industrial Land Regeneration in Shanghai," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    8. Duca, John V. & Kumar, Anil, 2014. "Financial literacy and mortgage equity withdrawals," Journal of Urban Economics, Elsevier, vol. 80(C), pages 62-75.
    9. Bo-sin Tang & Kwan To Wong, 2020. "Assessing externality: Successive event studies on market impacts of new housing development on an old residential neighbourhood," Environment and Planning B, , vol. 47(1), pages 156-173, January.
    10. van Duijn, Mark & Rouwendal, Jan & Boersema, Richard, 2016. "Redevelopment of industrial heritage: Insights into external effects on house prices," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 91-107.
    11. John C. Williams, 2014. "Financial stability and monetary policy: happy marriage or untenable union?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    12. Michael Bailey & Eduardo Dávila & Theresa Kuchler & Johannes Stroebel, 2019. "House Price Beliefs And Mortgage Leverage Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(6), pages 2403-2452.
    13. Citera, Emanuele & Sau, Lino, 2019. "Complexity, Conventions and Instability: the role of monetary policy," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201924, University of Turin.
    14. Theresa Kuchler & Monika Piazzesi & Johannes Stroebel, 2022. "Housing Market Expectations," CESifo Working Paper Series 9665, CESifo.
    15. Kuang, Pei, 2014. "A model of housing and credit cycles with imperfect market knowledge," European Economic Review, Elsevier, vol. 70(C), pages 419-437.
    16. Velma Zahirovic-Herbert & Karen M Gibler, 2022. "The effect of film production studios on housing prices in Atlanta, the Hollywood of the South," Urban Studies, Urban Studies Journal Limited, vol. 59(4), pages 771-788, March.
    17. Bao, Te & Hommes, Cars, 2019. "When speculators meet suppliers: Positive versus negative feedback in experimental housing markets," Journal of Economic Dynamics and Control, Elsevier, vol. 107(C), pages 1-1.
    18. Alessia De Stefani, 2021. "House price history, biased expectations, and credit cycles: The role of housing investors," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1238-1266, December.
    19. Lepinteur, Anthony & Waltl, Sofie R., 2020. "Tracking Owners' Sentiments: Subjective Home Values, Expectations and House Price Dynamics," Department of Economics Working Paper Series 299, WU Vienna University of Economics and Business.
    20. John V. Duca, 2013. "Regionally, Housing Rebound Depends on Jobs, Local Supply Tightness," Annual Report, Federal Reserve Bank of Dallas.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiaec:v:37:y:2023:i:1:p:51-81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.