A sound investment? Traffic noise mitigation and property values

Abstract

Traffic noise is a widespread problem that adversely affects health and well-being. A key policy question is how the benefit of noise mitigation compares with the cost. This study estimates the benefits of noise mitigation by its capitalization into property values. Using a dataset on properties considered for a noise mitigation programme, I estimate a difference-in-differences model that compares prices of properties receiving a measure to properties ineligible for the programme. Results show that noise mitigation raised property prices by 10-12 percent. The property price benefits exceed programme investment cost with each $1 spent on noise mitigation generating up to $1.7 in benefits.

How Do Different Noise Pollution Sources Affect Apartment Prices?

“…Traffic noise is also a common problem (Blanco & Flindell, 2011;Lindgren, 2021). Due to the increasing number of cars in recent years and the expanding road network, it is becoming increasingly troublesome.…”

Substantiation of Estimation Methods of Technogenic Noise Impact in Cadastral Value Determination of Land Plots

“…Foreign researchers have sufficient data at their disposal to successfully take into account the economic effect of the proximity of noise sources based on noise maps of the territory. For instance, Swedish scientists show that the Noise Abatement Program has triggered a 10-12 percent average increase in property prices [11]. Polish scientists have deduced the NDSI (Noise Depreciation Sensitivity Index), showing the percentage change in property prices per dB increase in noise level [12,13].…”