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Urban traffic externalities: quasi-experimental evidence from housing prices

Author

Listed:
  • Ioulia Ossokina

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Gerard Verweij

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

This paper exploits a quasi-experiment to value the benefits of reducing urban traffic externalities. As a source of exogenous variation we use the opening of a new bypass in The Hague, the Netherlands, that reduced traffic on a number of local streets, leaving others unaffected. We calculate the effect of the change in traffic nuisance on housing prices and find that a reduction of 50% in traffic density induces a 1% increase in housing prices on average. Reductions in traffic nuisance are valued much more positively when the traffic density is already high. We do not find evidence of anticipation effects up to 3 years before the change. Furthermore, our results indicate that traffic nuisance effects are likely to be biased in cross-sectional studies.

Suggested Citation

  • Ioulia Ossokina & Gerard Verweij, 2014. "Urban traffic externalities: quasi-experimental evidence from housing prices," CPB Discussion Paper 267, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:267
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    Cited by:

    1. repec:eee:jotrge:v:71:y:2018:i:c:p:15-31 is not listed on IDEAS
    2. Louis-Philippe Beland & Daniel A. Brent, 2018. "Traffic and the Provision of Public Goods," Departmental Working Papers 2018-04, Department of Economics, Louisiana State University.
    3. Joep Tijm & Thomas Michielsen & Raoul van Maarseveen & Peter Zwaneveld, 2018. "How Large are Road Traffic Externalities in the City? The Highway Tunneling in Maastricht, the Netherlands," CESifo Working Paper Series 7089, CESifo Group Munich.
    4. Sander Hoogendoorn & Joost van Gemeren & Paul Verstraten & Kees Folmer, 2016. "House prices and accessibility: Evidence from a natural experiment in transport infrastructure," CPB Discussion Paper 322, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Joep Tijm & Thomas Michielsen & Peter Zwaneveld & Raoul van Maarseveen, 2018. "How large are road traffic externalities in the city? The highway tunneling in Maastricht, the Netherlands," CPB Discussion Paper 379, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Dupraz, P. & Osseni, A. & Bareille, F., 2018. "Assessing the direct and indirect impacts of breeding activities on residential values: a spatial hedonic approach in Brittany," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276994, International Association of Agricultural Economists.
    7. repec:eee:jotrge:v:70:y:2018:i:c:p:131-140 is not listed on IDEAS
    8. repec:eee:pubeco:v:160:y:2018:i:c:p:96-116 is not listed on IDEAS
    9. Beland, Louis-Philippe & Brent, Daniel A., 2018. "Traffic and crime," Journal of Public Economics, Elsevier, vol. 160(C), pages 96-116.

    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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