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The Benefits and Costs of Noise Reduction

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  • Becker, Nir
  • Lavee, Doron

Abstract

This paper attempts to measure, in a cost–benefit analysis, a stricter noise abatement programme for noise originating from roads in Israel. Using the hedonic price method for three large cities and rural area transactions, a benefit from noise reduction was found. In order to perform a social cost–benefit analysis, a measure of benefit has been derived for 1 km of road and has been compared with the cost of noise reduction under different types of road structure. The results indicate that even though benefits have largely increased when compared to past decades (e.g. 1.2% of an average urban property value per 1 decibel reduction), the decision to insulate a given road is dependent on location and road structure. This raises the normative question of a national vs. regional standard that decision makers should be aware of and such studies could be of help in this respect.

Suggested Citation

  • Becker, Nir & Lavee, Doron, 2001. "The Benefits and Costs of Noise Reduction," MPRA Paper 22018, University Library of Munich, Germany, revised 29 Sep 2002.
    • Handle: RePEc:pra:mprapa:22018
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    File URL: https://mpra.ub.uni-muenchen.de/22018/8/MPRA_paper_22018.pdf
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    References listed on IDEAS

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    1. J. Tomkins & N. Topham & J. Twomey & R. Ward, 1998. "Noise versus Access: The Impact of an Airport in an Urban Property Market," Urban Studies, Urban Studies Journal Limited, vol. 35(2), pages 243-258, February.
    2. Nils Soguel, 1996. "Contingent Valuation of Traffic Noise Reduction Benefits," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 132(I), pages 109-123, March.
    3. Mats Wilhelmsson, 2000. "The Impact of Traffic Noise on the Values of Single-family Houses," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(6), pages 799-815.
    4. Palmquist, Raymond B., 1982. "Measuring environmental effects on property values without hedonic regressions," Journal of Urban Economics, Elsevier, vol. 11(3), pages 333-347, May.
    5. C. John Langley, Jr., 1976. "Adverse Impacts of the Washington Beltway on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 52(1), pages 54-65.
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    Cited by:

    1. Lavee, Doron & Bahar, Sefi, 2017. "Estimation of external effects from the quarrying sector using the hedonic pricing method," Land Use Policy, Elsevier, vol. 69(C), pages 541-549.
    2. Boris A. Portnov & Yakov Odish & Larissa Fleishman, 2005. "Factors Affecting Housing Modifications and Housing Pricing: A Case Study of Four Residential Neighborhoods in Haifa, Israel," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 371-408.
    3. Zambrano-Monserrate, Manuel A. & Ruano, María Alejandra, 2019. "Does environmental noise affect housing rental prices in developing countries? Evidence from Ecuador," Land Use Policy, Elsevier, vol. 87(C).

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    More about this item

    Keywords

    Cost benefit analysis; Noise; Israel;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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