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Valuating Noise Reduction Benefits with Hedonics: Heterogeneity in NDSIs from Road Noise

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  • M. Franck
  • J. Eyckmans
  • S. Rousseau

Abstract

Policy evaluations (such as cost-benefit analysis) of noise reduction measures require reliable estimates of society’s willingness to pay for improving environmental quality. Hedonic regressions are widely used in the literature for that purpose. The results of this technique are oft en compared in terms of their Noise Depreciation Sensitivity Index (NDSI). Heterogeneity in the results (i.e. NDSI) is usually ascribed to differences in, for instance functional forms, cut-off points and the independent variables. The aim of this paper is to discuss these options in more depth. It will become clear that there is a need for transparency regarding these choices and their impact on the NDSI.

Suggested Citation

  • M. Franck & J. Eyckmans & S. Rousseau, 2013. "Valuating Noise Reduction Benefits with Hedonics: Heterogeneity in NDSIs from Road Noise," Review of Business and Economic Literature, Intersentia, vol. 58(1), pages 2-34, March.
    • Handle: RePEc:sen:rebelj:v:58:i:1:y:2013:p:2-34
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    Cited by:

    1. Steven B Caudill & Ermanno Affuso & Ming Yang, 2015. "Registered sex offenders and house prices: An hedonic analysis," Urban Studies, Urban Studies Journal Limited, vol. 52(13), pages 2425-2440, October.
    2. Kwan Ok Lee & Alvan Hui Kiat Pang, 2022. "Railway sound barriers and housing prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(5), pages 1282-1306, September.

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