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Estimating the Effects of Light Rail Transit (LRT) on Land Price in Kaohsiung Using Geographically Weighted Regression


Mass Rapid Transit (MRT) can greatly improve the accessibility of the area and bring capitalization benefits to the surrounding land value. Due to financial budget constraints, the government often uses Land Value Capture for investment and financing. However, the research on the spatial variations in the influence of MRT on land value improvement at different stages is relatively rare. Therefore, in this paper, the spatial interpolation of Inverse Distance Weighted (IDW) in GIS spatial analysis and the hedonic price model based on ordinary least square (OLS) are used to establish a model based on Geographically Weighted Regression, so as to explore the impact of LRT on residential and commercial land prices along the LRT line from time and space dimensions. The results are: (I) there are significant spatial variations in the influence of Kaohsiung LRT on the land prices along the line at different stages. During the announcement period, the residential land prices will increase by an average of 0.08% for every 1% of the distance near the LRT station within 400 m of the line. In the construction period, the effect of LRT on residential and commercial land prices is basically the same. In the operation period, LRT only has a significant negative impact on residential land prices of the area from the Kaohsiung Exhibition Hall Station (C8) to Hamaxing Station (C14). (II) The GWR models have better local estimation effect than the global regression OLS models, and can better reflect the complex spatial changes.

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National Natural Science Foundation of China, Research on urban public service facilities reconfiguration in the Information Era—Case studies on Guangzhou and Fuzhou, No. 41801160; Open project State Key Laboratory of Subtropical Building Science, Spatial evolution and planning control of public service facility distribution based on Big data analysis, No.2020ZB12.

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Correspondence to Qingmu Su.

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Shi, M., Su, Q. & Zeng, X. Estimating the Effects of Light Rail Transit (LRT) on Land Price in Kaohsiung Using Geographically Weighted Regression. Transp. in Dev. Econ. 8, 9 (2022).

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  • Light rail transit
  • Land price
  • Hedonic price model
  • Geographically weighted regression
  • Spatial variations