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

Gabriel Ahlfeldt, Volker Nitsch and Nicolai Wendland

No 236, Darmstadt Discussion Papers in Economics from Darmstadt University of Technology, Department of Law and Economics

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 implicit hedonic price of rail noise tripled. Our results imply 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
New Economics Papers: this item is included in nep-env, nep-his, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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https://www.econstor.eu/bitstream/10419/214626/1/ddpie_236.pdf (application/pdf)

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)
Working Paper: Ease vs. noise: long-run changes in the value of transport (dis)amenities (2019)
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