Valuing consumption services as technology transforms accessibility: evidence from Beijing

Chen, Ying, Cheshire, Paul, Wang, Xiangqing and Wang, You-Sin (2024) Valuing consumption services as technology transforms accessibility: evidence from Beijing. CEP Discussion Papers (CEPDP2031). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

Home delivery reduced the value of cities as locations to access variety in durable consumption goods. Food delivery services (FDS) are doing the same for restaurants. Home-streaming of sports or home-delivered restaurant meals are close but not perfect substitutes for the live experiences. Here we investigate the impact of FDS in Beijing. Employing a Bartik IV strategy, we find that a one standard deviation increase in the number of FDS-accessible restaurants generates a 7.1% increase in property values. The premium is estimated as equivalent to half a top-quality school. FDS appears to be changing how cities deliver welfare from consumption services and so modifies urban land rents and housing attributes. Its value and that of restaurant variety increase with household size but seems to reduce the value of well-equipped kitchens.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2024 The Author(s)
Divisions:	Geography & Environment Centre for Economic Performance
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited:	13 Feb 2025 15:48
Last Modified:	13 Feb 2025 15:48
URI:	http://eprints.lse.ac.uk/id/eprint/126783

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