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The Benefits and Costs of Noise Reduction

  • Nir Becker
  • Doron Lavee

This paper attempts to measure, in a cost-benefit analysis, a stricter noise abatement programme for noise originating from roads in Israel. Using the hedonic price method for three large cities and rural area transactions, a benefit from noise reduction was found. In order to perform a social cost-benefit analysis, a measure of benefit has been derived for 1 km of road and has been compared with the cost of noise reduction under different types of road structure. The results indicate that even though benefits have largely increased when compared to past decades (e.g. 1.2% of an average urban property value per 1 decibel reduction), the decision to insulate a given road is dependent on location and road structure. This raises the normative question of a national vs. regional standard that decision makers should be aware of and such studies could be of help in this respect.

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Article provided by Taylor & Francis Journals in its journal Journal of Environmental Planning and Management.

Volume (Year): 46 (2003)
Issue (Month): 1 ()
Pages: 97-111

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Handle: RePEc:taf:jenpmg:v:46:y:2003:i:1:p:97-111
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  1. Palmquist, Raymond B., 1982. "Measuring environmental effects on property values without hedonic regressions," Journal of Urban Economics, Elsevier, vol. 11(3), pages 333-347, May.
  2. Mats Wilhelmsson, 2000. "The Impact of Traffic Noise on the Values of Single-family Houses," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(6), pages 799-815.
  3. Nils Soguel, 1996. "Contingent Valuation of Traffic Noise Reduction Benefits," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 132(I), pages 109-123, March.
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