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The impact of road rationing on housing demand and sorting

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  • Jerch, Rhiannon
  • Barwick, Panle Jia
  • Li, Shanjun
  • Wu, Jing

Abstract

Canonical urban models postulate transportation cost as a key element in determining urban spatial structure. This paper examines how road rationing policies impact the spatial distribution of households around transit centers using rich micro data on housing transactions and resident demographics in Beijing. We find that Beijing’s road rationing policy significantly increased the demand for housing near subway stations. The premium for proximity is stable in the periods prior to the driving restriction, but shifts significantly in the aftermath of the policy. The composition of households living close to subway stations shifts towards slightly wealthier households. Our findings suggest that city-wide road rationing policies can have the unintended consequence of limiting access to public transit for lower income individuals.

Suggested Citation

  • Jerch, Rhiannon & Barwick, Panle Jia & Li, Shanjun & Wu, Jing, 2024. "The impact of road rationing on housing demand and sorting," Journal of Urban Economics, Elsevier, vol. 140(C).
    • Handle: RePEc:eee:juecon:v:140:y:2024:i:c:s0094119024000123
    DOI: 10.1016/j.jue.2024.103642
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    More about this item

    Keywords

    Road rationing; Housing; Sorting; Urban structure;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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