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The amenity cost of road noise

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  • von Graevenitz, Kathrine

Abstract

This paper reports a complete two stage hedonic analysis for road noise. It is based on a large and detailed administrative data set covering 100,000 housing transactions in Copenhagen, Denmark including data on the individual households occupying the transacted homes. For the estimation of the hedonic price function I develop a spatial research design which simultaneously reduces the risk of omitted variable bias and addresses the risk of measurement error in the noise measure. The preference parameters are locally identified by approximating utility through a simple functional form. The recovered preference parameters reveal a great deal of heterogeneity across households. Observable demographic characteristics explain up to 40 percent of the variation in taste for quiet. Results are used to discuss willingness to pay for noise reductions from two policy measures: A European standard on noise emissions for tires, and the partial closure of a busy road in central Copenhagen.

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  • von Graevenitz, Kathrine, 2018. "The amenity cost of road noise," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 1-22.
    • Handle: RePEc:eee:jeeman:v:90:y:2018:i:c:p:1-22
    DOI: 10.1016/j.jeem.2018.04.006
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    Cited by:

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    3. Hausman, Catherine & Stolper, Samuel, 2021. "Inequality, information failures, and air pollution," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    4. 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).
    5. 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.
    6. Gabriel M. Ahlfeldt & Volker Nitsch & Nicolai Wendland, 2019. "Ease versus noise: long-run changes in the value of transport (dis)amenities," CEP Discussion Papers dp1631, Centre for Economic Performance, LSE.
    7. 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.
    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. 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).
    10. 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.
    11. 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.
    12. 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).

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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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