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Ease vs. Noise: On the Conflicting Effects of Transportation Infrastructure

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  • Gabriel Ahlfeldt
  • Volker Nitsch
  • Nicolai Wendland

Abstract

Many transport technologies cause a gnot]in]my]backyardh (NIMBY) reaction of locals in that they often oppose the nearby location of necessary infrastructure despite benefiting from greater mobility. We employ quasi]experimental research methods to disentangle the offsetting noise and accessibility effects of one technology of mass transit, metro rail, analyzing land price effects of the opening of the first German electrified metro rail line in Berlin in 1902. Examining a long]run micro]geographic data set, we find that, ceteris paribus, a 1 km reduction in distance from the nearest station increases land prices (house prices) by 21% (5%), while a 10 db increase in noise depreciates land prices (house prices) by 5% (1%). We show that these effects are underestimated by 40% (access) to 80% (noise) if they are not estimated conditional on each other. A complementary analysis of recent property transactions data suggests that preferences for accessibility have remained quite stable over the 20th century, while noise sensitivity increased substantially. The case for constructing underground as opposed to elevated rail lines is therefore stronger today than a century ago.

Suggested Citation

  • Gabriel Ahlfeldt & Volker Nitsch & Nicolai Wendland, 2016. "Ease vs. Noise: On the Conflicting Effects of Transportation Infrastructure," CESifo Working Paper Series 6058, CESifo.
  • Handle: RePEc:ces:ceswps:_6058
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    1. 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.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. 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.
    3. Gabriel M Ahlfeldt, 2018. "Weights to Address Non-parallel Trends in Panel Difference-in-differences Models," CESifo Economic Studies, CESifo Group, vol. 64(2), pages 216-240.
    4. Sevrin Waights, 2018. "Does the law of one price hold for hedonic prices?," Urban Studies, Urban Studies Journal Limited, vol. 55(15), pages 3299-3317, November.
    5. Tijm, Joep & Michielsen, Thomas O. & van Maarseveen, Raoul & Zwaneveld, Peter, 2019. "How large are the non-travel time effects of urban highway tunneling? Evidence from Maastricht, the Netherlands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 570-592.
    6. 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.
    7. Florian Mayneris, 2017. "Effets des infrastructures de transport sur le niveau et la localisation des activités économiques," LIDAM Discussion Papers IRES 2017023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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    More about this item

    Keywords

    accessibility; noise; land price; difference-in-differences; regression discontinuity;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-

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