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How much are people willing to pay for silence? A contingent valuation study

Author

Listed:
  • Jesus Barreiro
  • Mercedes Sanchez
  • Montserrat Viladrich-Grau

Abstract

Despite its major importance in the urban environment, the problem of noise has received little attention from environmental economists. In this paper the economic value of a noise reduction programme is evaluated. The chosen technique is contingent valuation using the recently proposed one and one-half bound question format. This new question format reduces the potential for response bias in multiple bound formats such as the double bound model while maintaining much of its efficiency. Through the estimations it is found that urban residents generally value noise negatively, that is, households are willing to pay for a noise reduction. In particular, it is found that households are willing to pay approximately four euros per decibel per year. A further finding is that interviewees show scope sensitivity; that is, households display a different willingness to pay for different degrees of noise reduction, most are willing to pay more for larger decreases in the level of disturbance from noise.

Suggested Citation

  • Jesus Barreiro & Mercedes Sanchez & Montserrat Viladrich-Grau, 2005. "How much are people willing to pay for silence? A contingent valuation study," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1233-1246.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:11:p:1233-1246
    DOI: 10.1080/00036840500123234
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    References listed on IDEAS

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    7. Carson, R.T. & Mitchell, R.C. & Hanemann, W.M. & Kopp, R.J. & Presser, S. & Ruud, P.A., 1992. "A Contingent Valuation Study of Lost Passive Use Values Resulting From the Exxon Valdez Oil Spill," MPRA Paper 6984, University Library of Munich, Germany.
    8. Riccardo Scarpa & Kenneth Willis & Guy Garrod, 2001. "Estimating Benefits for Effective Enforcement of Speed Reduction from Dichotomous-Choice CV," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(4), pages 281-304, December.
    9. Guy D. Garrod & Riccardo Scarpa & Kenneth G. Willis, 2002. "Estimating the Benefits of Traffic Calming on Through Routes: A Choice Experiment Approach," Journal of Transport Economics and Policy, University of Bath, vol. 36(2), pages 211-231, May.
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    Citations

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    Cited by:

    1. Jae Kim & Seung-Nam Kim & Soogwan Doh, 2015. "The distance decay of willingness to pay and the spatial distribution of benefits and costs for the ecological restoration of an urban branch stream in Ulsan, South Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 835-853, May.
    2. Marjainé, Szerényi Zsuzsanna & Harangozó, Gábor, 2014. "Mennyit ér a zajterhelés csökkenése?. Zajvédelmi intézkedések értékelése a haszonértékelések átvitelével
      [The value of silence. An application of benefit-transfer methodology for evaluating noise-c
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 68-91.
    3. Carlsson, Fredrik & Lampi, Elina & Martinsson, Peter, 2004. "Measuring marginal values of noise disturbance from air traffic: Does the time of the day matter?," Working Papers in Economics 125, University of Gothenburg, Department of Economics.
    4. Roi Durán & María Xosé Vázquez Rodríguez, 2009. "Efectos sociales de la contaminación acústica. Una aplicación de valoración al transporte ferroviario," Hacienda Pública Española, IEF, vol. 191(4), pages 27-42, December.
    5. Sotirios Thanos & Mark Wardman & Abigail Bristow, 2011. "Valuing Aircraft Noise: Stated Choice Experiments Reflecting Inter-Temporal Noise Changes from Airport Relocation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(4), pages 559-583, December.
    6. repec:eee:ecoser:v:5:y:2013:i:c:p:137-142 is not listed on IDEAS
    7. repec:eee:transa:v:107:y:2018:i:c:p:203-215 is not listed on IDEAS
    8. Tiziana Cuccia & Roberto Cellini, 2007. "Is cultural heritage really important for tourists? A contingent rating study," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 261-271.
    9. 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.
    10. Ewa Zawojska & Zbigniew Szkop & Mikołaj Czajkowski & Tomasz Żylicz, 2016. "Economic valuation of ecosystem services provided by the Wilanów Park: A benefit transfer study," Working Papers 2016-31, Faculty of Economic Sciences, University of Warsaw.

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