Welfare effects of increased train noise: A comparison of the costs and benefits of train whistle use at highway–railway crossings

Abstract

A US Federal Railroad Administration rule requires trains to sound their whistles while approaching and entering public highway–rail crossings. In an attempt to assess the likely impact of this policy change, we investigate the tradeoff between housing values and railroad safety due to the use of train whistles in Wisconsin. We find that even using the highest estimates of the benefits, the costs imposed by the increased train noise are likely to be greater by an order of magnitude. Furthermore, the costs are borne by homeowners, while the benefits accrue to commuters. Where commuters come largely from outside the political jurisdiction policy-makers are more likely to apply for an exception to prevent the new rule from taking effect.