Fly or Cry: Is Airport Noise Costly?

30 Pages Posted: 3 Aug 2009

See all articles by Volker Nitsch

Volker Nitsch

Darmstadt University of Technology - Department of Law and Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: July 2009

Abstract

Airport noise is costly. Airport location is typically associated with lower property prices. Airport expansion often sparks protests by local residents. In this paper, I provide new evidence on the costs of airport-related noise (and other disamenities of airports) for individuals. In contrast to previous work, I analyze voting results on restricting airport operations. Using data from a referendum on the closure of one of Berlin’s inner-city airports, Tempelhof, I find that voting behavior is not primarily explained by exposure to airport disamenities. Rather, strong opposition to closure in the vicinity of Tempelhof indicates that adaptive preferences may be important.

Keywords: noise, preferences, traffic, airports

JEL Classification: D61, D62, H41, I18, R41

Suggested Citation

Nitsch, Volker, Fly or Cry: Is Airport Noise Costly? (July 2009). CESifo Working Paper Series No. 2732, Available at SSRN: https://ssrn.com/abstract=1443090

Volker Nitsch (Contact Author)

Darmstadt University of Technology - Department of Law and Economics ( email )

Marktplatz 15
Residenzschloss
Darmstadt, 64283
Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

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