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Faster, taller, better: Transit improvements and land use policies

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  • Chen, Liming
  • Hasan, Rana
  • Jiang, Yi
  • Parkhomenko, Andrii

Abstract

We study the interaction between transit improvements and land use policies. Bengaluru, one of India’s largest cities, inaugurated a metro system in 2011 but has extremely low building heights, even near metro stations. We build a rich dataset and a quantitative spatial model in which heterogeneous workers choose among different commuting modes. We find that the metro increases citywide output and welfare, even net of costs. However, the net gains are several times larger with transit-oriented development (TOD), i.e., when height limits are relaxed near stations. Moreover, TOD and the construction of the metro are complementary policies.

Suggested Citation

  • Chen, Liming & Hasan, Rana & Jiang, Yi & Parkhomenko, Andrii, 2024. "Faster, taller, better: Transit improvements and land use policies," Journal of Development Economics, Elsevier, vol. 171(C).
    • Handle: RePEc:eee:deveco:v:171:y:2024:i:c:s0304387824000713
    DOI: 10.1016/j.jdeveco.2024.103322
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    More about this item

    Keywords

    Urban; Transit; Land use; Building heights; Transportation; Transit-oriented development; Spatial equilibrium; Development; India;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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