Market-Conscious Planning: A Planning Support Methodology for Estimating the Added Value of Sustainable Development in Fast Urbanizing China

Abstract

Planners need to adopt market-conscious planning to estimate how and where planning interventions create value for both investors and end-users. This article presents such kind of planning support methodology by incorporating difference-in-differences estimation into hedonic price models to examine the added value of sustainable development. It illustrates this methodology by using spatial panel data to compare market effects before and after the extension of the metro system in Nanjing, China. Results show that metro extension has positive effects in suburban areas, particularly in suburbs far away from metro stops before, while it has limited effects in central urban areas. Accessibility to financial and business services and open space also contributes to house prices after controlling for the effects of access to metros. Urban sustainable policies need to emphasize integration between land use and transportation planning in suburbs. This methodology provides planners with a means for determining market value of planning interventions, and contributes to more market-conscious planning.