The introduction of a faster mode of transport (train), accessible in discrete locations, leads to an extended city size. The stations of the "fast" mode attract dense residential settlements. As a result, the average residential and commercial land rents increase in both the competitive and segmented land market situations, as compared with the "slow" unimodal transport case. When rail investments only serve one particular centre, this leads to the growth of the advantaged centre at the expense of the other centre.

Generally speaking, investment in the fast mode results in city growth and increase in rent receipts. However, the effect of the investment for individual centres and their corresponding residential areas depends on the underlying land market assumptions and the level of investment. Distorted land markets lead to increases in commercial rents, but this is more than off-set by the decrease in residential land rent.

The car has gradually become the dominant transport mode in most cities of developed countries. However, there still are cities, such as London, Paris and New York, where a large part of the workers use public transport. Therefore, to make a proper analysis of land and labour markets in such cities, both transport modes should be considered.

Many cities started with a clear monocentric structure. During the course of time, however, a gradual decentration process took place, leading to a decreasing dominance of the original centre. But, in some cases, edge cities have developed, implying the emergence of additional centres of commercial activity in a metropolitan area.

In other cases, the gradual growth of small- and medium-sized cities led to the evolution of large metropolitan areas consisting of overlapping urban areas that were formerly independent. In both these cases of city evolution, the original monocentric urban model no more applies. This paper sets out to study both phenomena in an urban model which deal with the combination of multiple transport modes and multiple centres of economic activity.

The researchers conclude that each area of change on the model has a unique effect on the model equilibrium result. Due to possible transport cost saving, railway stations serve as centres which have an artificial wage and a corresponding residential land bid curve.

Generally, investment in the fast mode results in: city growth both in terms of area size and population; increase in rent receipts; and denser residential settlements. However, the effect of the investment for individual centres and their corresponding residential areas depends on the underlying land market assumptions and the level of investment.

Tinbergen Institute
Ghebreegziabiher Debrezion

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01/04/2004

Ghebreegziabiher Debrezion, Eric Pels and Piet Rietveld

research

Urban Policy > Transport and infrastructure > Public transport

Train services