Ease vs. noise: Long-run changes in the value of transport (dis)amenities

Gabriel Ahlfeldt, Volker Nitsch and Nicolai Wendland

No 13811, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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
New Economics Papers: this item is included in nep-env, nep-geo, nep-his, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://cepr.org/publications/DP13811 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Ease vs. noise: Long-run changes in the value of transport (dis)amenities (2019)
Working Paper: Ease vs. Noise: Long-run changes in the value of transport (dis)amenities (2019)
Working Paper: Ease vs. noise: Long-run changes in the value of transport (dis)amenities (2019)
Working Paper: Ease vs. noise: long-run changes in the value of transport (dis)amenities (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:13811

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP13811

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().