Quasi-experimental evidence on the effect of traffic externalities on housing prices

Ioulia Ossokina and Gerard Verweij

ERSA conference papers from European Regional Science Association

Abstract: This paper studies the effects on house prices of traffic nuisance on local streets. As source of exogenous variation in traffic nuisance we use the opening of a new state highway N14 in the Netherlands. This transport innovation altered the traffic density on the adjacent streets for some households, but left others unaffected. Controlling for spatial and house heterogeneity, we find that doubling of traffic density reduces housing prices with about 2%, what implies an upper value of traffic noise discount of about 0.5% per decibel. Our results indicate further that traffic nuisance discounts are likely to be misestimated in cross-sectional studies because nuisance tends to be correlated with omitted neighbourhood and housing amenities.

Date: 2011-09
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal00606.pdf (application/pdf)

Related works:
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:wiw:wiwrsa:ersa11p606

Access Statistics for this paper

More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().