Car Ownership? Evidence from the Copenhagen Metropolitan Area

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Map 5. Metro system extension 6.1. Excess demand Our first investigation concerns the changes in housing demand that would occur because of the extension of the metro network if house prices would remain unchanged. These changes in demand can only be realized if housing supply is infinitely elastic, which is obviously not the case in the Copenhagen area, if only because of the fact that so much land is already used for houses and other buildings. The exercise is nevertheless interesting because it shows how people would react to the change in public transport per se. Map 6 shows pct. change in household population per area in the GCA caused by the extension of the metro system. The map suggests that extension of the metro system will have a 28
Map 6. Pct. change in population of the households in the GCA caused by the metro extension substantial impact on housing demand, especially in the centre of the area along the new metro line. The increase in demand for these areas implies, of course, a decrease elsewhere in the region but since the improvement in accessibility is concentrated in a few areas, the decrease is spread over a much larger area. The extension of the metro will have more or less identical impact on single earner households and dual earners households. Moreover, especially relatively wealthier and higher educated households will be attracted by the extension of the metro system (see Maps A.1.-A.4 in Appendix A.3). 6.2. Housing price adjustments We have also investigated the housing market equilibrium that would realize after the extension of the metro network has been realized under the assumption that housing supply remains unchanged. This assumption is clearly the opposite of the one used in the previous subsection, 29
Page 1 and 2: TI 2015-139/VIII Tinbergen Institut
Page 3: Does improving public transport dec
Page 6 and 7: even in transportation the impact o
Page 8 and 9: It is a fair simplification to clai
Page 10 and 11: of owner-occupied residences consti
Page 12 and 13: 3. The model This section presents
Page 14 and 15: ∑ ∑ ∑ ,, , which implie
Page 16 and 17: holds for the unconditional compens
Page 18 and 19: sum of the average utility of the a
Page 20 and 21: characteristics that make an area a
Page 22 and 23: the last six are characterizing the
Page 24 and 25: determined by the demographic compo
Page 26 and 27: second stage we put the estimated v
Page 28 and 29: Table 4.a First step estimation pro
Page 30 and 31: preferred to apartments and a highe
Page 34 and 35: Map 7. Change in relative house pri
Page 36 and 37: demographic composition of neighbou
Page 38 and 39: Table 6: Compensating variations of
Page 40 and 41: area. Since it is difficult to choo
Page 42 and 43: Judd, K. 1998. Numerical Methods in
Page 44 and 45: Table A.1.2. Hedonic price equation
Page 46 and 47: Table A.2.2 First step IV estimatio
Page 48 and 49: Map A.2. Pct. change in population
Page 50 and 51: Map A.4. Pct. change in the share o
Page 52 and 53: Map A.6. Pct. change in the number
Page 54 and 55: In this equation the levels of ,

Car Ownership? Evidence from the Copenhagen Metropolitan Area

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