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Charging the polluters: A pricing model for road and railway noise

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  • Andersson, Henrik
  • Ögren, Mikael

Abstract

By combining standardized calculation methods for total noise levels and monetary estimates from well established evaluation methods, this study outlines a model to estimate the short run marginal cost (SRMC) for road and railway noise that is able to differentiate not only modes of transport, but also vehicles and technologies. Several sensitivity tests run for the SRMC show that estimates are: (i) insensitive to the traffic volume, (ii) sensitive to the number of exposed individuals, and (iii) sensitive to the monetary values used. Results also show that the use of quiet technology can have a significant effect on the SRMC.

Suggested Citation

  • Andersson, Henrik & Ögren, Mikael, 2012. "Charging the polluters: A pricing model for road and railway noise," TSE Working Papers 12-358, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:26570
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    References listed on IDEAS

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    1. Rothengatter, Werner, 2003. "How good is first best? Marginal cost and other pricing principles for user charging in transport," Transport Policy, Elsevier, vol. 10(2), pages 121-130, April.
    2. Brett Day & Ian Bateman & Iain Lake, 2007. "Beyond implicit prices: recovering theoretically consistent and transferable values for noise avoidance from a hedonic property price model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 211-232, May.
    3. Andersson, Henrik & Ögren, Mikael, 2007. "Noise charges in railway infrastructure: A pricing schedule based on the marginal cost principle," Transport Policy, Elsevier, vol. 14(3), pages 204-213, May.
    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    5. 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, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 73-89, January.
    6. Chris Nash, 2005. "Rail Infrastructure Charges in Europe," Journal of Transport Economics and Policy, University of Bath, vol. 39(3), pages 259-278, September.
    7. Andersson, Henrik & Jonsson, Lina & Ögren, Mikael, 2010. "Benefit measures for noise abatement: Calculations for road and rail traffic noise," LERNA Working Papers 10.17.323, LERNA, University of Toulouse.
    8. Jon P. Nelson, 2008. "Hedonic Property Value Studies of Transportation Noise: Aircraft and Road Traffic," Springer Books, in: Andrea Baranzini & José Ramirez & Caroline Schaerer & Philippe Thalmann (ed.), Hedonic Methods in Housing Markets, chapter 3, pages 57-82, Springer.
    9. Nijland, H. A. & Van Kempen, E. E. M. M. & Van Wee, G. P. & Jabben, J., 2003. "Costs and benefits of noise abatement measures," Transport Policy, Elsevier, vol. 10(2), pages 131-140, April.
    10. Niskanen, William A & Hanke, Steve H, 1977. "Land Prices Substantially Underestimate the Value of Environmental Quality," The Review of Economics and Statistics, MIT Press, vol. 59(3), pages 375-377, August.
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    Cited by:

    1. Swärdh, Jan-Erik & Genell, Anders, 2020. "Marginal costs of road noise: Estimation, differentiation and policy implications," Transport Policy, Elsevier, vol. 88(C), pages 24-32.
    2. Rødseth, Kenneth Løvold, 2023. "Noise pollution of container handling: External and abatement costs and environmental efficiency," Transport Policy, Elsevier, vol. 134(C), pages 82-93.

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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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