S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
CTS - Centre for Transport Studies Stockholm (KTH and VTI)
CTS - Centre for Transport Studies Stockholm (KTH and VTI) CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Working papers in Transport Economics

No 2012:27:
Estimating non-marginal willingness to pay for railway noise abatement: application of the two-step hedonic regression technique

Jan-Erik Swärdh (), Henrik Andersson, Lina Jonsson () and Mikael Ögren ()

Abstract: In this study we estimate the demand for peace and quiet, and thus also the willingness to pay for railway noise abatement, based on both steps of the hedonic model regression on property prices. The estimated demand relationship suggests welfare gains for a 1 dB reduction of railway noise as; USD 162 per individual per year at the baseline noise level of 71 dB, and USD 86 at the baseline noise level of 61 dB. Below a noise level of 49.1 dB, individuals have no willingness to pay for railway noise abatement. Our results also show the risk of using benefit transfer, i.e. we show empirically that the estimated implicit price for peace and quiet differs substantially across the housing markets. From a policy perspective our results are useful, not only for benefit-cost analysis, but also as the monetary component on infrastructure use charges that internalize the noise externality.

Keywords: Benefits transfer; Hedonic regression; Railway noise; Willingness to pay; (follow links to similar papers)

JEL-Codes: C21; C26; Q51; Q53; (follow links to similar papers)

36 pages, November 22, 2012

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

CTS-2012-27.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Mats Berggren ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:ctswps:2012_027 This page was generated on 2014-12-14 19:22:08