Car restriction policies and housing markets
Journal of Development Economics, 2022, vol. 156, issue C
This paper investigates the differential impacts of a unique car restriction policy – the car purchase lottery in Beijing – on the housing markets across locations within the city. I use a difference-in-differences approach to compare heterogeneous neighborhoods before and after the implementation of the policy. Housing prices experience a relative increase at locations closer to common destinations (employment centers: 0.7% per kilometer; primary schools: 3.3% per kilometer) and with better access to public transit (subways: 1.2% per kilometer; buses: 0.08% per line). These changes reflect capitalization of the car restriction policy and imply a large wealth redistribution as large as 6 years of average disposable income across homeowners. The results are relevant to policy, both in the context of unintended consequences and for efforts to develop offsetting measures.
Keywords: Car restriction policies; Housing prices; Capitalization; Wealth redistribution (search for similar items in EconPapers)
JEL-codes: D12 D31 R21 R48 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:156:y:2022:i:c:s0304387822000268
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