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Fly or Cry: Is Airport Noise Costly?

  • Volker Nitsch

Airport noise is costly. Airport location is typically associated with lower property prices. Airport expansion often sparks protests by local residents. In this paper, I provide new evidence on the costs of airport-related noise (and other disamenities of airports) for individuals. In contrast to previous work, I analyze voting results on restricting airport operations. Using data from a referendum on the closure of one of Berlin’s inner-city airports, Tempelhof, I find that voting behavior is not primarily explained by exposure to airport disamenities. Rather, strong opposition to closure in the vicinity of Tempelhof indicates that adaptive preferences may be important.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2009/wp-cesifo-2009-07/cesifo1_wp2732.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2732.

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Date of creation: 2009
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Handle: RePEc:ces:ceswps:_2732
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  1. Gabriel Ahlfeldt & Wolfgang Maennig, 2007. "Assessing External Effects of City Airports: Land Values in Berlin," Working Papers 011, Chair for Economic Policy, University of Hamburg.
  2. Bernard M.S. van Praag & Barbara E. Baarsma, 2004. "Using Happiness Surveys to Value Intangibles: The Case of Airport Noise," CESifo Working Paper Series 1163, CESifo Group Munich.
  3. Redding, Stephen J. & Sturm, Daniel M & Wolf, Nikolaus, 2007. "History and Industry Location: Evidence from German Airports," CEPR Discussion Papers 6345, C.E.P.R. Discussion Papers.
  4. 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.
  5. Jon P. Nelson, 2004. "Meta-Analysis of Airport Noise and Hedonic Property Values," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 38(1), pages 1-27, January.
  6. Simon Luechinger, 2009. "Valuing Air Quality Using the Life Satisfaction Approach," Economic Journal, Royal Economic Society, vol. 119(536), pages 482-515, 03.
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