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

Gabriel Ahlfeldt, Volker Nitsch and Nicolai Wendland

CEP Discussion Papers from Centre for Economic Performance, LSE

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)
Date: 2019-06-21
New Economics Papers: this item is included in nep-geo and nep-tre
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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:cep:cepdps:dp1631

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