Estimating non-marginal willingness to pay for railway noise abatement: Application of the two-step hedonic regression technique

Andersson, Henrik, Jonsson, Lina, Ögren, Mikael and Swärdh, Jan-Erik (2012) Estimating non-marginal willingness to pay for railway noise abatement: Application of the two-step hedonic regression technique. TSE Working Paper, n. 12-360

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Official URL: http://tse-fr.eu/pub/26573

Abstract

In this study we estimate the demand for peace and quiet, and thus also the willingness to pay
for railway noise abatement, based on both steps of the hedonic model regression on property prices.
The estimated demand relationship suggests welfare gains for a 1 dB reduction of railway noise as;
USD 162 per individual per year at the baseline noise level of 71 dB, and USD 86 at the baseline
noise level of 61 dB. Below a noise level of 49.1 dB, individuals have no willingness to pay for railway
noise abatement. Our results also show the risk of using benefit transfer, i.e. we show empirically
that the estimated implicit price for peace and quiet differs substantially across the housing markets.
From a policy perspective our results are useful, not only for benefit-cost analysis, but also as the
monetary component on infrastructure use charges that internalize the noise externality.

Item Type: Monograph (Working Paper)
Date: November 2012
Uncontrolled Keywords: Benefits transfer, Hedonic regression, Railway noise, Willingness to pay
JEL codes: C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
Q51 - Valuation of Environmental Effects
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:31
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:26573
URI: http://publications.ut-capitole.fr/id/eprint/15454

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