The construction of subways has an external impact on the urban environment. Among them, the most important acceleration function lies in the property values of housing near subway stations. Tianjin, the largest open coastal city in Northern China, is selected as the subject of the research in this paper by virtue of its unique background. The Hedonic Pricing Model is used in analysing the change in the value of the properties located within 1,000 metres of completed subway line 3 stations. Using the theories of land rent and land location, and a model of the impact of urban traffic on the surrounding real estate prices, we analyse the sphere of influence of Tianjin Metro Line 3 on real estate prices. Finally, the paper stresses the importance of urban construction and subway building and finds that different development strategies should be used according to the characteristics of the subway in various regions of the city.
Understanding the behavioral intentions of public transit passengers during the COVID-19 pandemic is important for transmission control interventions oriented towards public transport system travel behavior. This paper studies the relationship between passengers’ intentions to use public transport, a set of psychological variables, and the influence of transport management policies (POLs) under COVID-19. Specifically, this study presents a framework integrating the theory of planned behavior (TPB) and customer satisfaction (CS) theory and uses partial least squares structural equation modeling (PLS-SEM) applied to the survey responses of 983 residents of Tianjin, China. The empirical results support the validity of this integrated model of public transit use intentions by confirming several hypothesized relationships among the psychological variables studied. Moreover, POLs under COVID-19 are shown to enhance commuters’ intentions primarily via subjective norms (SNs), perceived behavioral control (PBC), perceived service quality (PSQ), and CS. These findings reveal the psychological mechanism through which passengers adjust their public transport travel intentions during the COVID-19 period. Based on the results, some feasible suggestions are proposed to help restore confidence in public transport after the pandemic.
Purpose
The purpose of this paper is to develop a trading and pricing method of expansion option (EO) model to solve expansion problems of build-operate-transfer (BOT) freeway project.
Design/methodology/approach
This paper proposes an ex ante mechanism through trading the EO to avoid the transaction costs. By editing the paths generated from binomial option pricing model, this paper establishes an American real option binomial lattice model and evaluates the value of EO. Data are collected from Liaoning province in China and the model is practiced in the context of a BOT freeway in Liaoning province.
Findings
Supported by empirical evidence, this study finds out that there exists a minimum price at which the government can sell the EO and a maximum price that the private sector is willing to pay. When the minimum price is negative, the government should transfer the EO to the private sector free of charge to avoid the transaction costs. Otherwise, the government should sell the EO at a reasonable price to protect public interests.
Practical implications
The study can be used for the government to reducing the transaction costs. By using the trading EO model, the government can sell its share of the EO to the private sector to manage its resources efficiently.
Originality/value
This paper builds a trading EO model to solve expansion problems instead of renegotiations. In addition to reducing the transaction costs for the whole society, trading EO can also raise the respective payoffs of both public and private sectors. An EO trading framework and algorithm is further developed. It realized an American option model, making the owner can exercise the option whenever he wants. Thus, the whole model is adapted to best fit BOT highway practice.
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