This article values the environmental benefits of historic, navigable canals using property values. We improve on standard methods by controlling for microgeographic fixed effects and applying a difference-in-differences method to canal restoration. We find a localized price premium within 100 m, around 5% before the 2008 recession, dropping to 3.4% by 2016. These effects are driven by urban canal-side properties with a direct outlook on the canals or immediate access. These locations are also attractive for developers, with a higher proportion of new-build sales. Our estimates suggest that canals generate land value uplift of #0.8?#0.9 billion in England.

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1 November 2021

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Land Economics 97(4) , pp.858-874, 2021

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DOI: 10.3368/le.97.4.031420-0038R1

http://le.uwpress.org/content/early/2021/10/13/le.97.4.031420-0038R1.abstract

This Journal article is published under the centre's Urban programme.