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The amenity cost of road noise

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  • von Graevenitz, Kathrine

Abstract

This article reports a complete two stage hedonic analysis for road noise. For the estimation of the hedonic price function I develop a spatial research design which simultaneously reduces the risk of omitted variable bias and the risk of measurement error in the noise measure. The preference parameters are identified following the approach developed in Bajari and Benkard (2005) by using a simple functional form for utility. Preferences are very heterogeneous and observable demographic characteristics explain 30 percent of the variation in taste for quiet. Results are used to discuss willingness to pay for noise reductions from two policy measures.

Suggested Citation

  • von Graevenitz, Kathrine, 2016. "The amenity cost of road noise," ZEW Discussion Papers 16-087, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:16087
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    20. Nicolai V. Kuminoff & Jaren C. Pope, 2014. "Do “Capitalization Effects” For Public Goods Reveal The Public'S Willingness To Pay?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55, pages 1227-1250, November.
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    Cited by:

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    2. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease vs. noise: Long-run changes in the value of transport (dis)amenities," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    3. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease versus noise: long-run changes in the value of transport (dis)amenities," LSE Research Online Documents on Economics 102824, London School of Economics and Political Science, LSE Library.
    4. León, Carmelo J. & Hernández-Alemán, Anastasia & Fernández-Hernández, Carlos & Araña, Jorge E., 2023. "Are rural residents willing to trade-off higher noise for lower air pollution? Evidence from revealed preferences," Ecological Economics, Elsevier, vol. 207(C).
    5. David Rey-Blanco & Pelayo Arbués & Fernando A. López & Antonio Páez, 2024. "Using machine learning to identify spatial market segments. A reproducible study of major Spanish markets," Environment and Planning B, , vol. 51(1), pages 89-108, January.
    6. Irwin, Nicholas B. & Livy, Mitchell R., 2021. "Measuring environmental (dis)amenity value during a pandemic: Early evidence from Maryland," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    7. Mohammad Maghrour Zefreh & Adam Torok, 2021. "Theoretical Comparison of the Effects of Different Traffic Conditions on Urban Road Environmental External Costs," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    8. Zambrano-Monserrate, Manuel A. & Ruano, María Alejandra, 2019. "Does environmental noise affect housing rental prices in developing countries? Evidence from Ecuador," Land Use Policy, Elsevier, vol. 87(C).
    9. H. Allen Klaiber & Ulrich B. Morawetz, 2021. "The Welfare Impacts of Large Urban Noise Reductions: Implications from Household Sorting in Vienna," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(1), pages 121-146, January.
    10. Panduro, Toke Emil & Jensen, Cathrine Ulla & Lundhede, Thomas Hedemark & von Graevenitz, Kathrine & Thorsen, Bo Jellesmark, 2018. "Eliciting preferences for urban parks," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 127-142.
    11. Diao, Mi & Li, Qiang & Sing, Tien Foo & Zhan, Changwei, 2023. "Disamenities of living close to transit tracks: Evidence from Singapore's MRT system," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    12. Argys, Laura M. & Averett, Susan L. & Yang, Muzhe, 2020. "Residential noise exposure and health: Evidence from aviation noise and birth outcomes," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).

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    More about this item

    Keywords

    hedonic method; traffic noise; preferences; measurement error;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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