Investigating the Impact of Airport Noise and Land Use Restrictions on House Prices: Evidence from Selected Regional Airports in Poland

Abstract

In this paper, we investigate the influence of airport operation on property prices. In this research, we apply spatial hedonic regression and a difference-in-differences approach to address the introduction of new land use restrictions on property prices. We use data on housing transactions from two housing submarkets around regional airports in Poland. The results suggest that the introduction of land use restrictions impacts property prices. In general, as expected, more rigid restrictions translate into higher discounts in property prices. This research contributes to the limited knowledge on the impact of the introduction of land use restrictions on property prices, as most previous papers have focused solely on the impact of noise. These findings must be treated with caution, as some estimates were not statistically significant, mainly due to limited sample size. The research has important policy implications. Growing airports in Poland face tensions between economic and environmental sustainability. Currently, airports in Poland are obliged to limit their environmental impact by creating limited use areas related to the aircraft related noise while being responsible for property value loss related to these restrictions. As a consequence, most regional airports face significant compensations to property owners.

Impact of a Vicinity of Airport on the Prices of Single-Family Houses with the Use of Geospatial Analysis

“…In many cases, there is a strong tension between economic sustainability (long-term economic growth, stable employment, infrastructure development), and environmental sustainability (limitation of negative externalities-noise, pollution) of the airport's operation. As a consequence, airport growth influences local planning and is often converted into restrictive local zoning plans, limiting potential development on the affected area in order to eliminate negative externalities [7]. Therefore, the establishment or enlargement of an airport always results in the occurrence of nuisance associated with its proximity, and the inability to meet the environmental protection standards related to noise.…”

Hidden Public Value Identification of Real Estate Management Decisions

“…Serving as such an example is, for instance, be the proximity to an airport. On the one hand, such proximity might be beneficial to industrial and commercial buildings seeing as how the economic activity of these objects might be connected with air traffic (BATÓG et al 2019). However, on the other hand, the same airport might reduce the value of houses (TROJANEK 2014).…”

“…Social segregation between different districts of cities (FORYŚ, PUTEK-SZELAG 2017;ŚWIĄDER et al 2016) influences the need for revitalization projects (KOSTOV et al 2017) and social inclusion of vulnerable groups (SZEWRAŃSKI et al 2018a; . Climate change threats require urban adaptation policies and plans (KIEŁKOWSKA et al 2016), among others in the field of renewable energy (WOHLGEMUTH, WOJTKOWSKA-ŁODEJ 2003;BOERENFIJN et al 2018;BAZAN-KRZYWOSZAŃSKA et al 2018), pluvial flood management (SZEWRAŃSKI ET AL. 2018b), and the thermal comfort of citizens (VAN HOOF et al 2017;KAZAK 2018).…”

Pass-by Characterization of Noise Emitted by Different Categories of Seagoing Ships in Ports

“…After the publication of European Noise Directive 2002/49/EC (END) [21], sustainability has grown towards the noise sources required by END: road and railway traffic [22][23][24], airports [25,26], and wind turbines [27,28]. For these type of noise sources, the scientific community has put a lot of effort into developing innovative and environmentally-friendly mitigations, such as low-noise pavements [29,30], live and integrated monitoring systems [31,32], sustainable metamaterial absorber [33,34], and sonic crystal noise barriers made of recycled materials [35].…”