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Aircraft Noise, Health, and Residential Sorting: Evidence from Two Quasi-Experiments

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Author Info

  • Boes, Stefan

    ()
    (University of Lucerne)

  • Nüesch, Stephan

    ()
    (University of Zurich)

  • Stillman, Steven

    ()
    (University of Otago)

Abstract

We explore two unexpected changes in flight regulations to identify the causal effect of aircraft noise on health. Detailed yearly noise metrics are linked with panel data on health outcomes using exact address information. Controlling for individual and spatial heterogeneity, we find that aircraft noise significantly increases sleeping problems, weariness and headaches. Our pooled models substantially underestimate the detrimental health effects, which suggests that individuals self-select into residence based on their unobserved noise sensitivity and idiosyncratic vulnerability. Generally, we show that the combination of fixed effects and quasi-experiments is very powerful to identify causal effects in epidemiological field studies.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6744.

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Length: 33 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6744

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Keywords: health; noise pollution; selection bias; fixed effects; quasi-experimental data;

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References

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  1. Nick Hanley & Mandy Ryan & Robert Wright, 2003. "Estimating the monetary value of health care: lessons from environmental economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(1), pages 3-16.
  2. Mokhtarian, Patricia L. & Cao, Xinyu, 2008. "Examining the impacts of residential self-selection on travel behavior: A focus on methodologies," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 204-228, March.
  3. Boes, Stefan & Nüesch, Stephan, 2011. "Quasi-experimental evidence on the effect of aircraft noise on apartment rents," Journal of Urban Economics, Elsevier, vol. 69(2), pages 196-204, March.
  4. Lucas W. Davis, 2004. "The Effect of Health Risk on Housing Values: Evidence from a Cancer Cluster," American Economic Review, American Economic Association, vol. 94(5), pages 1693-1704, December.
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  7. Greenstone, Michael & Gayer, Ted, 2009. "Quasi-experimental and experimental approaches to environmental economics," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 21-44, January.
  8. Oswald, A.J., 1997. "Happiness and Economic Performance," Papers 18, Centre for Economic Performance & Institute of Economics.
  9. Emmanouil Mentzakis, 2011. "Allowing for heterogeneity in monetary subjective well‐being valuations," Health Economics, John Wiley & Sons, Ltd., vol. 20(3), pages 331-347, March.
  10. Ada Ferrer-i-Carbonell & Bernard M.S. van Praag, 2002. "The subjective costs of health losses due to chronic diseases. An alternative model for monetary appraisal," Health Economics, John Wiley & Sons, Ltd., vol. 11(8), pages 709-722.
  11. Coneus, Katja & Spiess, C. Katharina, 2012. "Pollution exposure and child health: Evidence for infants and toddlers in Germany," Journal of Health Economics, Elsevier, vol. 31(1), pages 180-196.
  12. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
  13. Black, Deborah A. & Black, John A. & Issarayangyun, Tharit & Samuels, Stephen E., 2007. "Aircraft noise exposure and resident's stress and hypertension: A public health perspective for airport environmental management," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 264-276.
  14. Christopher F. Parmeter & Jaren C. Pope, 2012. "Quasi-Experiments and Hedonic Property Value Methods," Working Papers 2012-7, University of Miami, Department of Economics.
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Cited by:
  1. Almer, Christian & Boes, Stefan & Nuesch, Stephan, 2013. "How do Housing Prices Adjust After an Environmental Shock? Evidence from a State-Mandated Change in Aircraft Noise Exposure," Department of Economics Working Papers 37905, University of Bath, Department of Economics.

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