Externality Effects on Residential Property Values: The Example of Noise Disamenities

Abstract

Studies conducted by the Federal Railroad Administration in the 1990s reveal that train whistle bans lead to higher accident rates at train crossings. However, advocates of these bans argue that they eliminate noise externalities that have a detrimental effect on residential home values. To assess this latter claim, an event study is conducted and hedonic models are estimated for three different areas in which Conrail unilaterally began ignoring local whistle bans. While the findings consistently show that proximity to rail lines has a negative and statistically important influence on home values, there is little evidence that the Conrail decision had any permanent and appreciable influence on the housing values in these communities. In two of the three study areas, there is no statistically significant impact of the Conrail action, and in the third area, the effects are found to be temporary in duration. Copyright 2006 Blackwell Publishing.

Spatial planning procedures and property prices: The role of expectations

“…This means that people pay significantly more for more accessible properties. Similarly, close proximity to railways causes noise and other negative external effects to residents (see also Clark, 2006). The nearness of schools, hospitals and universities, as represented by the social/cultural variable, is positively related to property prices.…”

Do Places of Worship Affect Housing Prices? Evidence from Germany

“…and Short (1994), which differ from other studies, could also be explained by methodological shortcomings of their study (for details, see Carroll, Clauretie, and 1 However, over the past decades studies on the effects of externalities have commonly relied on the hedonic pricing technique. The impact on residential property prices has in recent years been analyzed using the hedonic framework, e.g., for air noise (e.g., Cohen and Coughlin 2009;McMillen 2004), road noise (e.g., Wilhelmsson 2000), rail noise (e.g., Clark 2006), (air) pollution (e.g., Decker, Nielsen, and Sindt 2005;Kim, Phipps, and Anselin 2003), rail transit stations (Bowes and Ihlanfeldt 2001), built heritage (e.g., Ahlfeldt and Maennig 2010) and school attributes (e.g., Clark and Herrin 2000).…”

Valoración económica del ruido: una revisión analítica de estudios

“…El estudio primario se complementó con información recolectada por medio de una encuesta. Similarmente, Clark (2006), por medio de la aplicación del método de precios hedóni-cos, valora los niveles de ruido generados por los trenes y sus bocinas en las intersecciones viales. Según los resultados de sus análisis, al igual que Bellinger (2006), determina una relación inversa entre los precios de las viviendas y la cercanía a las vías de los trenes.…”