Ease vs. Noise: Long-Run Changes in the Value of Transport (Dis)Amenities

100 Pages Posted: 30 Jul 2019

See all articles by Gabriel M. Ahlfeldt

Gabriel M. Ahlfeldt

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Volker Nitsch

Darmstadt University of Technology

Nicolai Wendland

Touro College

Date Written: June 2019

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 effect of rail noise tripled in percentage terms. Our results imply long-run 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, Difference-in-Differences, income elasticity, land price, noise, Spatial differencing

JEL Classification: N73, N74, R12, R14, R41

Suggested Citation

Ahlfeldt, Gabriel M. and Nitsch, Volker and Wendland, Nicolai, Ease vs. Noise: Long-Run Changes in the Value of Transport (Dis)Amenities (June 2019). CEPR Discussion Paper No. DP13811. Available at SSRN: https://ssrn.com/abstract=3428331

Gabriel M. Ahlfeldt (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://personal.lse.ac.uk/ahlfeldg/

Volker Nitsch

Darmstadt University of Technology ( email )

Universitaets- und Landesbibliothek Darmstadt
Magdalenenstrasse 8
Darmstadt, Hesse D-64289
Germany

Nicolai Wendland

Touro College ( email )

1602 Avenue J
New York, NY 10010
United States

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