Impacts of light rail in a mid-sized city: Evidence from Olsztyn, Poland

Abstract

Investments in light rail transit (LRT) have become increasingly popular solutions to promote sustainable urban transportation. However, their impacts on cities are still subject to discussion in the academic community. There is a clear need to better understand the potential impacts of LRT projects, particularly in contexts other than major cities. In this study, we focus on the Olsztyn tram project, which has been implemented in a city of 173,000 residents situated in northeastern Poland. The paper combines different perspectives and data sources, including a study of residents’ stated preferences concerning travel behavior and modelling of housing price effects using the difference-in-differences approach. Our results suggest that the Olsztyn tram project led to a moderate change in travel behavior by increasing the frequency of public transport use but did not result in a substantial shift away from car commuting. Concerning the property market, a decline in prices was observed during the construction phase, but no statistically significant effects were found after completion.