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Monetary valuation of aircraft noise: A hedonic analysis around Amsterdam airport

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  • Dekkers, Jasper E.C.
  • van der Straaten, J. Willemijn

Abstract

In densely-populated countries and in particular in large metropolitan areas, the presence of so much human activity causes all sorts of negative externalities, for example traffic noise disturbance. These externalities call for corrective measures by the government. Economists have developed a number of procedures that provide reasonable estimates on the monetary value of some amenities and externalities. In this paper we develop a spatially-explicit hedonic pricing model for house prices in order to quantify the social cost of aircraft noise disturbance in monetary terms. While focusing on aircraft noise around Amsterdam airport in the urban fringe of the Amsterdam region, a key point in our analysis is that we account for background noise. We do this by taking multiple sources of traffic noise (i.e. road, railway and aircraft noise) into account simultaneously and by setting threshold values for all three sources of noise above which sound is generally experienced as nuisance. Based on our regression results we conclude that a higher noise level means ceteris paribus a lower house price. Air traffic has the largest price impact, followed by railway traffic and road traffic. These model outcomes can subsequently be used to estimate the marginal and total benefits of aircraft noise reduction in the studied area around Amsterdam airport. We find a marginal benefit of 1Â dB noise reduction of 1459 Euro per house, leading to a total benefit of 1Â dB noise reduction of 574Â million Euros.

Suggested Citation

  • Dekkers, Jasper E.C. & van der Straaten, J. Willemijn, 2009. "Monetary valuation of aircraft noise: A hedonic analysis around Amsterdam airport," Ecological Economics, Elsevier, vol. 68(11), pages 2850-2858, September.
  • Handle: RePEc:eee:ecolec:v:68:y:2009:i:11:p:2850-2858
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Friso de Vor & Henri L.F. de Groot, 0000. "The Impact of Industrial Sites on Residential Property Values," Tinbergen Institute Discussion Papers 09-035/3, Tinbergen Institute.
    2. Yoo, James & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J. & Kinzig, Ann P. & Perrings, Charles, 2013. "The value of agricultural water rights in agricultural properties in the path of development," Ecological Economics, Elsevier, vol. 91(C), pages 57-68.
    3. Swärdh, Jan-Erik & Andersson, Henrik & Jonsson, Lina & Ögren, Mikael, 2012. "Estimating non-marginal willingness to pay for railway noise abatement: application of the two-step hedonic regression technique," Working papers in Transport Economics 2012:27, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. repec:eee:ecolec:v:138:y:2017:i:c:p:82-89 is not listed on IDEAS
    5. repec:bla:presci:v:96:y:2017:i:2:p:423-444 is not listed on IDEAS
    6. Sunak, Yasin & Madlener, Reinhard, 2012. "The Impact of Wind Farms on Property Values: A Geographically Weighted Hedonic Pricing Model," FCN Working Papers 3/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Mar 2013.
    7. Abigail Bristow & Mark Wardman & V. Chintakayala, 2015. "International meta-analysis of stated preference studies of transportation noise nuisance," Transportation, Springer, vol. 42(1), pages 71-100, January.
    8. repec:gam:jsusta:v:10:y:2017:i:1:p:36-:d:124218 is not listed on IDEAS
    9. Andersson, Henrik & Swärdh , Jan-Erik & Ögren , Mikael, 2015. "Traffic noise effects of property prices: hedonic estimates based on multiple noise indicators," Working papers in Transport Economics 2015:11, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    10. Sotirios Thanos & Abigail L. Bristow & Mark R. Wardman, 2015. "Residential Sorting And Environmental Externalities: The Case Of Nonlinearities And Stigma In Aviation Noise Values," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 468-490, June.
    11. Yoo, James & Perrings, Charles & Kinzig, Ann & Abbott, Joshua K. & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J., 2012. "The Value of Water Rights in Agricultural Properties in the Phoenix Active Management Area," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124095, Agricultural and Applied Economics Association.
    12. repec:gam:jsusta:v:9:y:2017:i:11:p:2088-:d:118611 is not listed on IDEAS
    13. Stefan Sebastian Fahrländer & Michael Gerfin & Manuel Lehner, 2015. "The influence of noise on net revenue and values of investment properties: Evidence from Switzerland," Diskussionsschriften dp1502, Universitaet Bern, Departement Volkswirtschaft.
    14. Le Boennec, Rémy & Salladarré, Frédéric, 2017. "The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France," Ecological Economics, Elsevier, vol. 138(C), pages 82-89.
    15. repec:gam:jsusta:v:10:y:2018:i:2:p:341-:d:129186 is not listed on IDEAS
    16. Kopsch, Fredrik, 2016. "The cost of aircraft noise – Does it differ from road noise? A meta-analysis," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 138-142.
    17. repec:oup:jecgeo:v:17:y:2017:i:6:p:1283-1300. is not listed on IDEAS
    18. Montero, José-María & Fernández-Avilés , Gema & Mínguez, Román, 2011. "Spatial Hedonic Pricing Models for Testing the Adequacy of Acoustic Areas in Madrid, Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 157-181.

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