RT Journal Article
SR Electronic
T1 Valuing the Environmental Benefits of Canals and Canal Restoration Using House Prices
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 858
OP 874
DO 10.3368/le.97.4.031420-0038R1
VO 97
IS 4
A1 Gibbons, Stephen
A1 Peng, Cong
A1 Tang, Cheng Keat
YR 2021
UL http://le.uwpress.org/content/97/4/858.abstract
AB This article values the environmental benefits of historic, navigable canals using property values. We improve on standard methods by controlling for microgeographic fixed effects and applying a difference-in-differences method to canal restoration. We find a localized price premium within 100 m, around 5% before the 2008 recession, dropping to 3.4% by 2016. These effects are driven by urban canal-side properties with a direct outlook on the canals or immediate access. These locations are also attractive for developers, with a higher proportion of new-build sales. Our estimates suggest that canals generate land value uplift of £0.8–£0.9 billion in England.