Principal Investigator
- Jason Cao, Professor , Humphrey School of Public Affairs
Summary
Although previous studies have extensively explored the impacts of rail transit on economic development after its
opening, few have examined its impact on real estate development before its opening. Using building permit data
from the city of St. Paul, this study investigates the effects of key announcements of the Green Line light rail transit
(LRT) by employing location quotient analysis and difference-in-difference models to compare building activity in
the LRT corridor and control corridors. We found that the announcement of preliminary engineering had no
impacts on the count and value of building permits, whereas the announcement of Full Funding Grant Agreement
tended to increase the number of building permits by about 30% and the value by 80%. We concluded that in
addition to LRT investment, proactive land use planning policies, public subsidies, and public funded projects are
important contributors to building activity.
Project Details
- Project number: 2014049
- Start date: 02/2014
- Project status: Completed
- Research area: Planning and Economy
- Topics:
Economics, Planning, Transit