Capitalization of Interconnected Active Transportation Infrastructure

Landscape and Urban Planning

Cristina Connolly, Mitchell R. Livy, Yun Qiu

Abstract

This paper investigates the capitalized value of interconnected active transportation infrastructure in Franklin County, Ohio. We expand on the existing literature on preferences for local amenities by examining the impact of connections between local amenities and active transportation infrastructure on the sales price of single family homes. Hedonic results indicate that proximity to bike facilities results in positive capitalization, with on-road facilities driving this result. Extending the analysis to examine interconnectivity, we find that bike facility capitalization is heterogeneous depending on the types of local amenities and infrastructure links. For example, on road facility connections with bus stop locations decrease nearby home values, while on-road facilities linked to local open space increase the value of proximate homes. Together, these results provide evidence that connectivity is an important input to active transportation planning.

Keywords: Active transportation; Bike facilities; Connectivity; Hedonic; Capitalization

JEL classification: Q5; R3; R4; R5