Model for the Evaluation of Urban Transport Policies and Their Interaction with the Housing Market

Abstract

We analyze several scenarios of transport reforms for the city of Bordeaux (France) using a model that takes into account the interaction between transport and the housing market. We find that road pricing schemes are significantly more effective when they are accompanied by an increase in housing supply in locations where demand increases. This allows households to consider their options for relocation in the medium and long term. Our analysis is based on an aggregate model with a nested decision structure that includes both transport and housing. We provide a full description of the model structure and the calibration steps and make the source code available for those who wish to analyze other cases.