published in: Economic Journal, 2005, 115 (500), 224-246
Inhabitants of houses near Amsterdam Airport are complaining of noise nuisance, caused by
aircraft traffic. The usual assumption is that the effect of the externality will be perfectly
reflected by house price differentials. This is based on the implicit assumption that there is a
well-functioning housing market. If that is not true, we need a correction method in order to
assess the intangible damage. We assess the monetary value of the noise damage, caused
by aircraft noise nuisance around Amsterdam Airport as the sum of hedonic price differentials
and a residual cost component. The residual costs are assessed from a survey, including an
ordinal life satisfaction scale, on which individual respondents have scored. The derived
compensation scheme depends on, among other things, the objective noise level, income,
the degree to which prices account for noise differences, and the presence of noise
insulation.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.