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External productivity and utility effects of city airports

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  • Ahlfeldt, Gabriel M.
  • Maennig, Wolfgang

Abstract

This paper uses a micro-level data set for residential and commercial property transactions to investigate external utility and productivity effects for three (city) airports in Berlin, Germany in a spatial hedonic analysis. We find strong evidence of adverse noise effects on property prices and a discontinuity at approximately 55dB. Marginal price effects decrease significantly in the presence of alternative noise sources, which can lead to biased estimates if the interaction effect is not accounted for appropriately. Given that there is less evidence of positive accessibility effects, our result questions the justification for locating airports in city centres.

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  • Ahlfeldt, Gabriel M. & Maennig, Wolfgang, 2011. "External productivity and utility effects of city airports," LSE Research Online Documents on Economics 33897, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:33897
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    8. N. Edward Coulson & Michael L. Lahr, 2005. "Gracing the Land of Elvis and Beale Street: Historic Designation and Property Values in Memphis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 33(3), pages 487-507, September.
    9. Michael Lokshin, 2006. "Difference-based semiparametric estimation of partial linear regression models," Stata Journal, StataCorp LP, vol. 6(3), pages 377-383, September.
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    11. Nelson, Jon P., 1979. "Airport noise, location rent, and the market for residential amenities," Journal of Environmental Economics and Management, Elsevier, vol. 6(4), pages 320-331, December.
    12. Gabriel M. Ahlfeldt & Wolfgang Maennig, 2010. "Substitutability and Complementarity of Urban Amenities: External Effects of Built Heritage in Berlin," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 285-323, June.
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    Cited by:

    1. Veronika Liebelt & Stephan Bartke & Nina Schwarz, 2019. "Urban Green Spaces and Housing Prices: An Alternative Perspective," Sustainability, MDPI, vol. 11(13), pages 1-21, July.
    2. Ahlfeldt, Gabriel M. & Maennig, Wolfgang, 2015. "Homevoters vs. leasevoters: A spatial analysis of airport effects," Journal of Urban Economics, Elsevier, vol. 87(C), pages 85-99.
    3. Ahlfeldt, Gabriel M. & Maennig, Wolfgang, 2015. "Homevoters vs. leasevoters: A spatial analysis of airport effects," Journal of Urban Economics, Elsevier, vol. 87(C), pages 85-99.
    4. Schaffner, Sandra & Breidenbach, Philipp & Cohen, Jeffrey P., 2019. "Continuation of air-services in Berlin-Tegel and its effects on housing prices," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203623, Verein für Socialpolitik / German Economic Association.
    5. Dakshina De Silva & Caroline Elliott & Robert Simmons, 2013. "Restaurant wars," Working Papers 44312700, Lancaster University Management School, Economics Department.
    6. Jacek Batóg & Iwona Foryś & Radosław Gaca & Michał Głuszak & Jan Konowalczuk, 2019. "Investigating the Impact of Airport Noise and Land Use Restrictions on House Prices: Evidence from Selected Regional Airports in Poland," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    7. Andreas Mense & Konstantin Kholodilin, 2014. "Noise expectations and house prices: the reaction of property prices to an airport expansion," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(3), pages 763-797, May.
    8. Beimer, Waldemar & Maennig, Wolfgang, 2020. "On the price gap between single family houses and apartments," Journal of Housing Economics, Elsevier, vol. 49(C).
    9. Radoslaw Trojanek & Justyna Tanas & Saulius Raslanas & Audrius Banaitis, 2017. "The Impact of Aircraft Noise on Housing Prices in Poznan," Sustainability, MDPI, vol. 9(11), pages 1-16, November.
    10. Liebelt, Veronika & Bartke, Stephan & Schwarz, Nina, 2018. "Revealing Preferences for Urban Green Spaces: A Scale-sensitive Hedonic Pricing Analysis for the City of Leipzig," Ecological Economics, Elsevier, vol. 146(C), pages 536-548.
    11. Breidenbach, Philipp & Cohen, Jeffrey P. & Schaffner, Sandra, 2019. "Continuation of air services at Berlin-Tegel and its effects on rental prices," Ruhr Economic Papers 822, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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