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New Flight Regimes and Exposure to Aircraft Noise: Identifying Housing Price Effects Using a Ratio-of-Ratios Approach

  • Stefan Boes

    ()

    (Socioeconomic Institute, University of Zurich)

  • Stephan Nüesch

    ()

    (Institute of Strategy and Business Economics, University of Zurich)

In October 2003, a new flight regime was introduced at Zurich airport that significantly changed the levels of noise pollution in surrounding communities. We investigate the impact of the new flight policy on apartment prices using a hedonic price model and a non-linear difference-in-differences identification strategy. Our results suggest that rental prices increased by about 3 to 8 percent less in regions affected by the policy change, controlling for several apartment and location characteristics. The noise discount is still significant, although smaller, even after the inclusion of object-speciffc fixed effects. However, we do not find evidence of price changes in the sales market.

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File URL: http://www.soi.uzh.ch/research/wp/2009/wp0906.pdf
File Function: first version, 2009
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Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0906.

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Length: 40 pages
Date of creation: Apr 2009
Date of revision:
Publication status: forthcoming in Journal of Urban Economics
Handle: RePEc:soz:wpaper:0906
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