Author(s)

PETRA AMRUSCH, FRANZ WIRL

Abstract

This paper investigates the impact of a major revamping of a major in inner-city shopping location, more precisely, ‘Mariahilferstraße’ in Vienna. This street was also a major route to the (old) city centre. This route has been closed and the whole street is now (more or less) a pedestrian area. This unique event is used to fit hedonic pricing models in order to quantify in monetary terms the effects of less accessibility, traffic and pollution. Our findings are that property prices increase due to limiting urban motor traffic and promoting pedestrian areas in a major shopping street of Austria. Moreover, economic impacts of environmental measures are assessed, i.e. by deferring the willingness to pay for reduced urban traffic irrespective of accessibility.

Keywords

hedonic modelling, estimation of non-market value, Austrian housing market, valuation of traffic-related environmental conditions, willingness-to-pay for accessibility in shopping streets, neighbourhood effects, Mariahilferstraße