Speed 2.0 Evaluating access to univ ersal digital highways
Abstract :
This paper shows that having access to a fast Internet connection is an important determinant of capitalization e ffects in property markets. We combine microdata on property prices in Engl and between 1995 and 2010 with local availability of Internet broadband con nections. Rich variation in internet speed over space and time allows us to estimate the causal effect of broadband speed on property prices. We find a significantly positive effect, but diminishing returns to speed. Our resu lts imply that an upgrade from narrowband to a high-speed first-generation broadband connection (offering Internet speed up to 8 Mbit/s) could increas e the price of an average property by as much as 2.8%. A further increase t o a faster connection (offering speeds up to 24 Mbit/s) leads to an increme ntal price effect of an additional 1%. We decompose this effect by income a nd urbanization, finding considerable heterogeneity. These estimates are us ed to evaluate proposed plans to deliver fast broadband universally. We fin d that increasing speed and connecting unserved households passes a cost-be nefit test in urban and some suburban areas, while the case for universal d elivery in rural areas is not as strong.
DTSTAMP:20260421T173454Z DTSTART:20141009T173000Z DTEND:20141009T190000Z SEQUENCE:0 TRANSP:OPAQUE END:VEVENT END:VCALENDAR