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CEP discussion paper

Ease versus noise: long-run changes in the value of transport (dis)amenities


For a complete cost-benefit analysis of durable infrastructures, it is important to understand how the value of non-market goods such as transit time and environmental quality changes as incomes rise in the long-run. We use difference-in-differences and spatial differencing to estimate the land price capitalization effects of metro rail in Berlin, Germany today and a century ago. Over this period, the negative effect of rail noise tripled in percentage terms. Our results imply long-run income elasticities of the value of noise reduction and transport access of 2.2 and 1.4, substantially exceeding cross-sectional contingent valuation estimates.


Gabriel M. Ahlfeldt, Volker Nitsch and Nicolai Wendland

21 June 2019     Paper Number CEPDP1631

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This CEP discussion paper is published under the centre's Urban programme, Community Wellbeing programme.

This publication comes under the following theme: Community cohesion