Impact of high-speed railway on gentrification and regional inequality in Japan

This study examines the effects of high-speed railways (HSRs) on gentrification in Japan from 2000 to 2019, using indicators including land prices and income levels. Using the market access index and instrumental variable strategy, we establish a causal relationship between HSR expansion and gentrification. The results show a 39.38% increase in urban land prices and 6.20% rise in urban income compared to a 21.13% decrease in rural land prices and 3.33% decrease in rural income. Additionally, rural areas experienced a population decline of 38.61%, whereas urban migration surged by 71.93%, indicating HSR-driven urban prosperity at the expense of rural areas. Based on our policy simulations, these trends are expected to continue. To mitigate these inequalities, we suggest fare policy adjustments that promote rural–urban travel as an effective gentrification countermeasure. Our findings highlight the importance of holistic infrastructure strategies, including innovative fare models, to achieve equitable urban–rural development.