Abstract
The purpose of this investigation is to provide insights into household responses to aircraft noise pollution by estimating the implicit demand, as revealed by residential site choice and therefore property values, for aircraft noise abatement (i.e., noise related environmental quality). Given this demand relation it is possible to estimate the compensating variation associated with noise pollution differentials; that is the amount households are willing to pay for an increase in environmental quahty associated with a reduction in aircraft noise.
Highlights
Though it is generally recognized that the spatial distrihution of en vironmental characteristics over an urhan area influences residential site choice and, residential property values, little property value analysis has been done on other air pollution-specific environmental problems. [9, 11] It is becoming increasingly evident, that other nonmarketed joint products of economic activity are as noxious to households as is air pollution
The significance of this noise pollution problem is evidenced by the recognition that serious health problems are associated with prolonged exposure to certain critical noise levels (1: 227-236), by the legislated aircraft noise standards coming into effect, and by the increasing number of court awards to homeowners for trespassing damages due to aircraft overflights. [10, 13] Despite this, there are few discussions in the literature on the economic effects of aircraft noise pol lution, or on household responses to spatial differences in experienced noise intensities
The purpose of this investigation, is to provide insights into household responses to aircraft noise pollution by estimating the imphcit demand, as revealed by residential site choice and prop erty values, for aircraft noise abatement. Given this demand relation it is possible to estimate the compensating variation associated with noise pollution differentials; that is the amount households are willing to pay for an increase in environ mental quahty associated with a reduction in aircraft noise
Summary
Though it is generally recognized that the spatial distrihution of en vironmental characteristics over an urhan area influences residential site choice and, residential property values, little property value analysis has been done on other air pollution-specific environmental problems. [9, 11] It is becoming increasingly evident, that other nonmarketed joint products of economic activity are as noxious to households as is air pollution. There is little evidence concerning the nature or mag nitude of the costs incurred by households because of aircraft operations over residential areas The purpose of this investigation, is to provide insights into household responses to aircraft noise pollution by estimating the imphcit demand, as revealed by residential site choice and prop erty values, for aircraft noise abatement (i.e., noise related environment al quality). The compensating variation associated with a nonmarginal environment improvement is derived by integrating over the estimated demand fimction.' This approach is based on the presumption that utihty maximizing households equate their marginal willingness to pay for environmental quality to the marginal purchase price. If a nonlinear specification of the opportunity locus is estimated, it is possible to construct a series of implicit equilibrium prices for noise abatement (i.e., increases in environmental quabty) which may be com bined with observed values of noise intensity to create a set of price/ quantity relations.^ These can be used for purposes of demand estimation.®
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
