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Impacts of high-speed rail construction on land prices in urban agglomerations: Evidence from Kyushu in Japan

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  • Okamoto, Chigusa
  • Sato, Yasuhiro

Abstract

High-speed rail integrates regions and cities, and thus can possibly have significant impacts on the distribution of economic activities. Using the opening and extensions of a high-speed rail, Shinkansen, in Kyushu, Japan, we examine its effects on land prices in urban agglomerations, which would reflect changes in the distribution of economic activities across urban agglomerations. We estimate hedonic price equations to conduct a difference-in-differences analysis. We find that the large metropolitan areas gained from the high-speed rail by experiencing increases in land prices, whereas small metropolitan areas located between them lost by experiencing decreased land prices. However, such positive effects are shown to be limited to areas close to Shinkansen stations.

Suggested Citation

  • Okamoto, Chigusa & Sato, Yasuhiro, 2021. "Impacts of high-speed rail construction on land prices in urban agglomerations: Evidence from Kyushu in Japan," Journal of Asian Economics, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:asieco:v:76:y:2021:i:c:s1049007821000932
    DOI: 10.1016/j.asieco.2021.101364
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    3. Fangting Chi & Haoying Han, 2023. "The Impact of High-Speed Rail on Economic Development: A County-Level Analysis," Land, MDPI, vol. 12(4), pages 1-22, April.
    4. Mariano Gallo & Rosa Anna La Rocca, 2022. "The Impact of High-Speed Rail Systems on Tourist Attractiveness in Italy: Regression Models and Numerical Results," Sustainability, MDPI, vol. 14(21), pages 1-33, October.
    5. Yoo, Sunbin & Kumagai, Junya & Kawasaki, Kohei & Hong, Sungwan & Zhang, Bingqi & Shimamura, Takuya & Managi, Shunsuke, 2023. "Double-edged trains," Transport Policy, Elsevier, vol. 133(C), pages 120-133.
    6. Mu Lin & Jingxin Gao & Yongjie Du & Pengyu Ren, 2023. "Mismatch in Urban Construction Land Use and Economic Growth: Empirical Evidence from China," Land, MDPI, vol. 12(2), pages 1-21, February.
    7. Jianing Xu & Weidong Li, 2023. "High-Speed Rail and Industrial Agglomeration: Evidence from China’s Urban Agglomerations," Land, MDPI, vol. 12(8), pages 1-18, August.

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    More about this item

    Keywords

    High-speed rail; Land price; Hedonic approach; Agglomerations;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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