 Examining the impact of high-speed railways on land value and government revenue: Evidence from ChinaShaoshuai Li, Zhigang Li and Jia Yuan China Economic Review, 2020, vol. 63, issue C Abstract: The Beijing-Shanghai high-speed railway operates at 300 km per hour to connect two of the most important Chinese cities within a travel time of 5 h. By exploiting a unique government land sale dataset, this paper investigates the impact of this high-speed railway on land price and then on the local government revenue. We show that the BSH generally increases the land price by about 87%, which amounts to about RMB 99 billion (around USD 14 billion) more in government land sale revenue or helps to cover about 45% of its construction cost. Furthermore, we show the heterogeneity of the impacts of the BSH on the prices of different types of land. Specifically, we find that residential land located within 3 km from a BSH station experiences a price increase of 278%. This effect is weaker for mixed-use land. Our finding shows that high-speed railway itself could serve as a key channel of infrastructure financing and government revenue sources. Keywords: High-speed railway; Transportation infrastructure; Land value; Government revenue (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:63:y:2020:i:c:s1043951x20300997 DOI: 10.1016/j.chieco.2020.101502 Access Statistics for this article China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu More articles in China Economic Review from Elsevier |
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