Applying spatial hedonic price model to explore the effects of taiwan high speed railway on land price

Capital investment in transportation, such as Taiwan High Speed Railway (THSR), brings many significant impacts not only population growth, industrial development and land price at a local level, but the economical structure and spatial development pattern at a regional level. Reviewing past domestic studies, many of them predicted the impacts of THSR. Some studies had discussed the impact of THSR on local development. However, these studies usually used single station or a specific year to verify and thereby the results could not have a systematical and whole discussion. As a result, this paper used the land price indexes as analysis data to reveal the impact of THSR and applied spatial error model to explore the impacts of THSR on land price in Taiwan's towns along with THSR. All the THSR stations might be analyzed in four selected years. Moreover, a comparative analysis between different stations was conducted in this paper. The result showed the different influence in selected years, revealing the effects of THSR on land price. More importantly, the effects were affected by the existing development near the stations. The result findings could support governments for transportation investment and regional development.