Ease versus noise: long-run changes in the value of transport (dis)amenities

Gabriel Ahlfeldt, Volker Nitsch and Nicolai Wendland

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: For a complete cost-benefit analysis of durable infrastructures, it is important to understand how the value of non-market goods such as transit time and environmental quality changes as incomes rise in the long-run. We use difference-in-differences and spatial differencing to estimate the land price capitalization effects of metro rail in Berlin, Germany today and a century ago. Over this period, the negative effect of rail noise tripled in percentage terms. Our results imply long-run income elasticities of the value of noise reduction and transport access of 2.2 and 1.4, substantially exceeding cross-sectional contingent valuation estimates.

Keywords: accessibility; spatial differencing; noise; difference-in-differences; income elasticity; land price (search for similar items in EconPapers)
JEL-codes: N73 N74 R12 R14 R41 (search for similar items in EconPapers)
Pages: 98 pages
Date: 2019-06-21
New Economics Papers: this item is included in nep-env, nep-geo, nep-his and nep-tre
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http://eprints.lse.ac.uk/102824/ Open access version. (application/pdf)

Related works:
Working Paper: Ease versus noise: long-run changes in the value of transport (dis)amenities (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:102824

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