The effect of gasoline prices on suburban housing values in China

PLEASE NOTE: THE VENUE FOR THIS EVENT HAS CHANGED.
Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 03 April 2020
11.00am–12.00pm

Venue

Online Seminar

Speaker

Tong Zhang

Contacts

Ryan Edwards

This is a fully online event. Please email the event organiser if you would like to join.

By raising commuting costs, an increase in gasoline prices should reduce the demand for housing in locations far from employment centers relative to locations that are closer to jobs. This study investigates the impact of higher gasoline prices on suburban housing values in China’s 19 largest cities over 2010–2018. The findings suggest that a 1 per cent increase in gasoline prices leads to a 0.002 per cent reduction in home values relative to values in the central business district (CBD) for every additional kilometer from the CBD. The effects are large in tier 1 cities, suburbs that are more densely populated, and in cities where commute distances differ significantly within a city. The estimates suggest that the rise of electric vehicles may contribute to a lowering of the geographical price differentials in major Chinese cities.

Updated:  2 June 2020/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Team