Planes, Trains, and Automobiles: The Impact of Traffic Noise on House Prices
AbstractBecause of large planned infrastructural projects like expansion of the main airport and construction of high-speed railways, noise nuisance has become a national social topic in the Netherlands. Moreover, according to EU-guidelines, determination and enforcement of differentiated noise limits will be delegated from national to local governments in the near future. The value of noise has never been this important. In this paper, we estimate the non-linear impact of traffic noise on property prices. The used data set is very extensive; over 100,000 sales transactions are studied, with many individual property characteristics, combined with noise levels for 2 million small 100 by 100 m areas. We use spatial autocorrelation techniques to overcome the regular problems of traditional NIMBY-analysis performed by hedonic regression. In a rising market, we find that the impact of traffic noise ranges to 12 percent, with an average of about 5 percent. The discount varies across sub-markets, and is a non-linear function of the noise level.
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Bibliographic InfoArticle provided by Springer in its journal The Journal of Real Estate Finance and Economics.
Volume (Year): 28 (2004)
Issue (Month): 2_3 (03)
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Web page: http://www.springerlink.com/link.asp?id=102945
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- ANDERSSON Henrik & JONSSON Lina & OGREN Mikael, 2008.
"Property Prices and Exposure to Multiple Noise Sources: Hedonic Regression with Road and Railway Noise,"
LERNA Working Papers
08.25.269, LERNA, University of Toulouse.
- Henrik Andersson & Lina Jonsson & Mikael Ögren, 2010. "Property Prices and Exposure to Multiple Noise Sources: Hedonic Regression with Road and Railway Noise," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(1), pages 73-89, January.
- Andersson, Henrik & Jonsson, Lina & Ögren, Mikael, 2008. "Property Prices and Exposure to Multiple Noise Sources: Hedonic Regression with Road and Railway Noise," Working Papers 2008:10, Swedish National Road & Transport Research Institute (VTI).
- Dan P. McMillen, 2004. "House prices and the proposed expansion of Chicago's O'Hare Airport," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 28-39.
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