2020 Volume 75 Issue 6 Pages I_181-I_190
In this study, specific spatial panel dataset is built using listed land price data from FY 2000 to FY 2018 as well as past data on undergrounding projects in Kyoto City until FY 2017, which was collected and sorted in collaboration with Kyoto City. This data is used to estimate the causal effect of undergrounding and utility pole removal projects on nearby land prices considering project start, underground work completion, and existing utility pole removal dates via a difference-in-difference (DID) technique. Based on the panel data from FY 2010 to FY 2018, a price premium (i.e., marginal effect) of 12.5% is observed upon the completion of utility pole removal projects, if the spatial range of the treatment group is defined as 50 meters from the site where the utility pole removal project is conducted. On the other hand, a price premium of 7.5% is observed, if the spatial range of the treatment group is defined as 200 meters from the site. Additionally, to consider the difference in the timing of the effect appearance, the causal effect at the project start, underground work completion, and existing utility pole removal is examined. There is a larger effect after pole removal than project start or underground work completion.
