Airports: Noise vs. Proximity Alexander Knapp Econ 439 3/12/2008.

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Presentation transcript:

Airports: Noise vs. Proximity Alexander Knapp Econ 439 3/12/2008

Questions Should people living near an airport be compensated for the noise generated? If so, how much?

Reno-Tahoe Airport 1417 homes were observed Noise levels were taken in decibles Overall quality of houses were recorded, including selling price

Map was created:

A hedonic equation was used to calculate the new price of the house including the noise nuisance: P = β 0 + β n Noise + β D Distance +∑ β 1 X i + u Where β 0 is a constant term Noise is the noise level within a certain contour Distance is valued in miles X i is all of the external variables

Results:

Conclusion: Noise and Distance both have a negative impact on property values for the Reno-Tahoe Airport

Manchester Airport Very similar setup to the Reno-Tahoe study 568 homes observed Similar external house variables added to equation L eq was used in place of overall decibels Observes the excess noise energy made by the airport excluding the background noise

Graphically the results look like this:

Conclusion: Noise, like the Reno-Tahoe study, has a negative impact on property values Proximity, however, has a positive impact on property values

What does this mean for policy makers? Reno-Tahoe Study? Placing tougher noise policies could increase property value Manchester Study? Placing tougher noise policies could cause flight delays and eventually stunt the growth of the surrounding area Must be looked at on a case by case bases

Zurich airport to pay $160,000 USD to one homeowner 19,000 more lawsuits could follow In 2008 the Minneapolis Airport was forced to provide noise mitigation for 9,560 homes totaling $127 million Oakland CA. the Port of Oakland agreed to insulate 200 homes if the city would drop the lawsuit preventing an airport expansion

Questions?

Espey, M., & Lopez, H. (2000). The Impact of Airport Noise and Proximity on Residential Property Values. Growth and Change, Tomkins, J., Topham, N., Twomey, J., & Ward, R. (1998). Noise versus Access: The Impact of an Airport in Urban Property Market. Urban Studies, Vol. 35, No. 2, ion.html?siteSect=108&sid= &cKey= &ty=st ion.html?siteSect=108&sid= &cKey= &ty=st