Traffic noise and property values

Sammanfattning: This thesis consists of five papers about traffic noise andproperty values. Their aim was to analyze the impact of trafficnoise on property values and to translate this effect into amonetary value. The method used was the hedonic technique inwhich the price of the property is assumed to be a function ofits attributes (e.g. living area and indoor quality). It ispossible to estimate implicit prices of all the attributes byregressing the property prices on housing and locationattributes. These implicit prices could then be used toestimate the price and income sensitivity of the differentattributes.Essay 1, written together with my colleagues KickiBjörklund and Bo Söderberg, investigates thepurposes, data sources, presentations and methodologies ofpublished empirical works. Overall, these works exemplify goodscientific practice. Essay 2 is an analysis that estimates themarginal willingness-to-pay for a reduction in traffic noise.Noise is negatively capitalized into house values and theanalysis shows that a house relatively far away from a nearbyroad would sell for 15-20 percent more than a house near theroad. Essay 3 presents a methodology for estimating the priceand income elasticity of different housing attributes. Thisentails estimating a system of expenditure functions based onan additive preference function. The analysis indicates thathousing attributes are relatively insensitive to price andincome changes. Essay 4 discusses whether an investment innoise abatements was justified economically. By analyzing housesales that has occurred more than once, where some of thehouses were sold before and after the investment, it ispossible to estimate the effect of the traffic noise barrier.The conclusion, in this particular case, is that investment innoise barriers is highly justified. Essay 5 is my licentiatethesis that has already been presented.