Consumption Vibrancy And Location Value In The Urban Space:Determinants And Mechanisms

Local consumption amenities are now one of the crucial factors for cities’ quality of life and sustainable competitiveness.The relevant research has also been a cuttingedge topic in the field of urban economics.Urban spatial planning,investment and management in transportation infrastructures are now important tools for the local governments to improve market size and thus promote consumption vibrancy.Further,consumption vibrancy will capitalize in both commercial and residential location values.On the basis of international frontier researches,this thesis focuses on how the land use and transportation system reduce spatial frictions and shape consumption spaces of one city.This thesis theoretically analyzes the effect on consumption vibrancy of market size,which is decided together by population distribution and transportation cost.Using multi-dimensional micro data of Beijing,this thesis then measures consumption vibrancy,calculates market potential which is generated from people’s moving speed in the transportation system,and measures connectivity which is affected by the local block-design elements.Based on the above calculation,this dissertation empirically tests their effects on consumption vibrancy from both global and local perspectives.This dissertation also tests the premium of consumption vibrancy in location values based on the Hedonic model.The empirical findings of this thesis include:(1)from the global perspective,each standard deviation increase in market potential leads to 0.8 standard deviation increase in the number of retail stores and 0.5 standard deviation increase in their diversity;but severe congestion reduces global accessibility and harms commercial activities;while subway construction eases the harm of congestion and promotes consumption vibrancy of station areas;(2)from the local perspective,higher walkability and more parking spaces will increase connectivity,encourage the potential customers to further access retail stores,thus improve consumption vibrancy;(3)higher consumption vibrancy will capitalize in commercial location values,each standard deviation increase in consumption vibrancy leads to 0.2-0.3 standard deviation increase in commercial land price;abundant and varied consumption amenities will also improve quality of life and thus capitalize in residential location value.Based on the theoretical and empirical conclusions,this dissertation provides two main implications:(1)urban planners and administrators should reduce spatial frictionst from both global and local perspectives,by integrating land use and transportation policies,so as to promote consumption vibrancy and increase quality of life and location values;(2)retailers and residents could make appropriate location choice based on their preference and reasonable understanding in market size,as well as its future changes.