Ease versus noise: long-run changes in the value of transport (dis)amenities

Ahlfeldt, Gabriel M., Nitsch, Volker and Wendland, Nicolai (2019) Ease versus noise: long-run changes in the value of transport (dis)amenities. CEP Discussion Papers (1631). Centre for Economic Performance, LSE, London, UK.

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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 longrun. 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.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information:	© 2019 The Authors
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HE Transportation and Communications H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HC Economic History and Conditions
JEL classification:	R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R14 - Land Use Patterns R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R41 - Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise N - Economic History > N7 - Transport, International and Domestic Trade, Energy, Technology, and Other Services > N73 - Europe: Pre-1913 N - Economic History > N7 - Transport, International and Domestic Trade, Energy, Technology, and Other Services > N74 - Europe: 1913-
Date Deposited:	06 Dec 2019 15:45
Last Modified:	25 Jan 2020 00:23
URI:	http://eprints.lse.ac.uk/id/eprint/102824

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