Geographical Determinants of Residential Land Values in Luxembourg

Doctoral thesis (2014)

The sustained periurbanisation observed throughout Luxembourg has considerably challenged spatial planning policies. The limited success of recent policies that aimed at modifying consumers’ residential ... [more ▼]

The sustained periurbanisation observed throughout Luxembourg has considerably challenged spatial planning policies. The limited success of recent policies that aimed at modifying consumers’ residential preferences, underlies the main research objective of this thesis to further understand consumers’ preferences for the local geographical context, that can be considered as additional drivers of the ongoing urban spatial expansion. Besides the standard trade-off discussed in the monocentric city model (Alonso, 1964), several extensions to this model and specifically the periurban model (Cavailhès et al., 2004) have shown the utility bearing attributes of local urban and rural amenities for land consumers. By the means of the hedonic pricing method (Rosen, 1974), I aimed thus at identifying the marginal value of periurban amenities developable land consumers revealed when purchasing land. The main question addressed in this thesis is how urban and green amenities are valued by land consumers in Luxembourg, relying on advanced spatial econometric techniques. Further the focus was turned to the heterogeneity of consumers’ preferences with regard to their socio-economic background, relying on the spatial quantile regression approach. Moreover, spatial market segmentation and spatial heterogeneity in the valuation of the geographical determinants was further investigated by relying on the multilevel modelling approach, rather an uncommon practice in hedonic modelling context. The results of the thesis confirm that distance to Luxembourg by car and parcel size are the main determinants of land prices in Luxembourg, confirming thus urban economic theory. It was shown that not all land consumers are in competition on the same market and spatial market segments have been identified. Further, we show that land-use diversity is valued differently at different distances and that its marginal impact varies throughout Luxembourg, depending on the specific geographical context, and with regard to the price distribution. Results underline the importance of periurban amenities in consumers’ location decision, that however vary between (spatial) market segments. Accounting for the specificities of the local geographical context and individuals needs should help finding ways to design more acceptable and liveable neighbourhood plans that at the same time account better for the negative effects of urban spatial expansion. [less ▲]

Spatial patterns of land-use and neighbourhood diversity: a multilevel analysis of residential land prices in Luxembourg

Scientific Conference (2014, August 28)

There is increasing interest in understanding how the spatial organisation of land uses within a neighbourhood impact on the perceived quality of a residential place. Not only this diversity may lead to ... [more ▼]

There is increasing interest in understanding how the spatial organisation of land uses within a neighbourhood impact on the perceived quality of a residential place. Not only this diversity may lead to higher attractiveness but also is usually seen as a key aspect of sustainable urban growth (mixed use development). Geoghegan et al. (1997) assume that increasing land use diversity might affect property values in two ways: negatively as they introduce higher chances of negative visual and noise externalities, but in the meantime positively as diversity may implicitly mean the proximity to important local urban amenities. Our paper aims at revealing the role of land-use diversity in determining the price of residential land, hence the attractiveness of a location beyond the structural qualities of houses. We conduct a hedonic price analysis of all residential land transactions across the Grand Duchy of Luxembourg between 2007 and 2011. Land-use diversity is measured by the Shannon diversity index. In addition to these unconventional geographical measures, we rely also on a multilevel modelling approach, which is still quite rare in land and housing hedonic literature (notable exceptions are Orford (2000), and Chasco and Le Gallo (2012)). We believe the multi-level approach is needed here to account for the nested nature of the data and to relax the assumption of a unitary equilibrium land market. As an alternative to the single-level model, the multilevel model accounts for the hierarchical structure of the spatial units, by modelling the variability at each of the considered levels and allowing individual observations within a particular spatial unit to be more similar than a random sample (Jones, 1991). Orford (2000) in particular emphasises the capacity of multi-level models to deal with spatial segmentations of the market and spatial dependence effects. In our paper we first identify the variability of transaction price at the different levels compared to the overall mean. Second, we check for spatial variations in the valuation of land-use diversity and parcel size in the residential land market. Third we test for remaining spatial effects via a cross-regressive multilevel model, as suggested by Chasco and Le Gallo (2012). Our results confirm the usefulness of the multilevel model approach and a negative valuation of close land-use diversity, whereas it is considered a positive externality in walking distance. Further, random coefficients for the Shannon indices confirm spatial variations in the valuation of land-use diversity. Via the cross-regressive multilevel model we test for remaining spatial effects and conclude that our model cleared up the entire spatial dependence in the land price data, conversely to the case in Chasco and Le Gallo (2012) and thus rather supporting suggestions from Orford (2000). [less ▲]

Urban compactness and the trade-off between air pollution emission and exposure: Lessons from a spatially explicit theoretical model

in Computers, Environment and Urban Systems (2014), 45

Air pollution is a major concern in urban areas worldwide. The interplay between urban structure and air pollution from an environmental, health and social perspective is the focus of our work: we model ... [more ▼]

Air pollution is a major concern in urban areas worldwide. The interplay between urban structure and air pollution from an environmental, health and social perspective is the focus of our work: we model how urban structure impacts traffic-induced pollutant emissions and the exposure of residents to those pollutants. We present a chain of models applied to theoretical monocentric space: a residential choice model with endogenous open-space and road network, a commuting traffic generation and road assignment model and a pollutant emissions, dispersion and exposure model. The theoretical study approach decouples results from location specific characteristics and enables us to analyse how the preference of households for green amenities, a transport tax, the provision of public transport alternatives and local neighbourhood design impact the environment (total emissions) as well as residents’ health (population exposure) and utility. We emphasise that environmental strategies in the form of urban compaction have a strong impact on the exposure of households to pollutants, especially close to the centre, in addition to their reduction of welfare. Our results suggest that more beneficial policy outcomes can be obtained from strategies which preserve green spaces close to the centre or which intend a greater shift from car to public transport. Further, we find indication that different local designs of neighbourhoods have much stronger impacts on the exposure–emission tension than city-wide land use or transport options. [less ▲]

Les modifications territoriales dans la Grande Région SaarLorLux du Congrès de Vienne à aujourd hui

E-print/Working paper (2014)

The territorial changes of the Greater Region since 1815 are presented in ten maps. The timeline map shows the territorial situation in a defined year from 1815 onwards (if the map does not appear after a ... [more ▼]

The territorial changes of the Greater Region since 1815 are presented in ten maps. The timeline map shows the territorial situation in a defined year from 1815 onwards (if the map does not appear after a few seconds, it might be necessary to reload the page). After activating the timeline you can choose a year (set both controllers to the same year). In addition it is possible to let the map run through the time like a video. The map can be zoomed in and out, and you can access relevant information by clicking on a territory. [less ▲]

Die Bevölkerung der Großregion SaarLorLux

E-print/Working paper (2014)

This contribution is an excerpt from the report on the economic and social situation of the Greater Region 2013/2014 for the Economic and Social Committee of the Greater Region (IBA/OIE, 2014, pp. 3-10 ... [more ▼]

This contribution is an excerpt from the report on the economic and social situation of the Greater Region 2013/2014 for the Economic and Social Committee of the Greater Region (IBA/OIE, 2014, pp. 3-10). The maps show the population density in the Greater Region as of 1 January 2013, the working-age population as of 1 January 2012 and the population development from 2000 to 2013 (Lorraine: zones d'emploi 1999-2011), calculated by the Interregional Labour Market Observatory IBA. The population density of the Greater Region in 2013 was almost 175 inhabitants per square kilometre, although the distribution varies widely from regionally: from more than 2,000 inhabitants per square kilometre in Mainz and Ludwigshafen to the sparsely populated areas of Verdun and Commercy with less than 30 inhabitants per square kilometre. This is where important economic priorities lie and influences from the large conurbations of neighboring federal states have an impact. Densely populated areas are also located in the northern part of Wallonia, particularly in the economic centres of Charleroi and Liège. In addition, the population of the Greater Region concentrates primarily on a transnational core area, which encompasses all sub-regions and important economic priorities. [less ▲]

Morphogenèse et maîtrise de l'étalement urbain: des noyaux d'habitat pour accompagner le choix résidentiel?

Conference given outside the academic context (2013)

Réussir une politique de maîtrise de l'étalement urbain qui, en apparence au moins, contrecarre les désirs des ménages est assurément une gageure sur laquelle plus d'une ville s'est cassé les dents ... [more ▼]

Réussir une politique de maîtrise de l'étalement urbain qui, en apparence au moins, contrecarre les désirs des ménages est assurément une gageure sur laquelle plus d'une ville s'est cassé les dents. Le concept de noyaux d'habitat enrichit la perspective normative en apportant une dimension locale trop absente du discours sur la ville compacte et la densification des villes. A la lumière de travaux théoriques et empiriques reliant l'émergence de formes urbaines aux contraintes de mobilité des ménages et à leur goût pour des biens publics locaux, il apparaît que c'est peut-être moins la localisa;on intrinsèque des noyaux d'habitat que la qualité de leur aménagement et leur connexion aux espaces verts et biens publics qui permettra de réconcilier les enjeux communs d'une urbanisa;on durable et les choix individuels. [less ▲]

Effects of residential preferences and structures on population exposure to air pollution

Presentation (2013)

On MAUP, neighbourhood definitions and the measure of urban sprawl

Scientific Conference (2013)

Villes du Moyen Âge tardif (1180-1500) dans la Grande Région SaarLorLux

E-print/Working paper (2013)

Due to different natural, political and economic conditions, there are clear differences in the territorial distribution and temporal development of late medieval towns in the Greater Region. The map ... [more ▼]

Due to different natural, political and economic conditions, there are clear differences in the territorial distribution and temporal development of late medieval towns in the Greater Region. The map 'Cities of the Late Middle Ages' shows the cities which could be designated as cities in the Late Middle Ages, i.e. between the beginning of the 13th century and the year 1500. It is important that the definition of a late medieval town meets several criteria. [less ▲]

Das Brauwesen in der Großregion SaarLorLux

E-print/Working paper (2013)

The beginnings of beer go back to the time of Roman rule. However, beer only gained in importance through the medieval monasteries of the Greater Region, but was exposed to strong competition from wine ... [more ▼]

The beginnings of beer go back to the time of Roman rule. However, beer only gained in importance through the medieval monasteries of the Greater Region, but was exposed to strong competition from wine. It was not until the political and economic upheaval following the French Revolution that the brewery industry spread. [less ▲]