Airports:

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Airports Noise vs. Proximity
Alexander Knapp Econ 439 3/12/2008
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Questions

• Should people living near an airport be
  compensated for the noise generated?
• If so, how much?

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Reno-Tahoe Airport

• 1417 homes were observed
• Noise levels were taken in decibles
• Overall quality of houses were recorded,
  including selling price

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Map was created
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• A hedonic equation was used to calculate the new
  price of the house including the noise nuisance
• P ß0 ßnNoise ßDDistance ? ß1Xi u
• Where ß0 is a constant term
• Noise is the noise level within a certain contour
  
• Distance is valued in miles
• Xi is all of the external variables

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• Results

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• Conclusion
• Noise and Distance both have a negative impact on
  property values for the Reno-Tahoe Airport

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Manchester Airport

• Very similar setup to the Reno-Tahoe study
• 568 homes observed
• Similar external house variables added to
  equation
• Leq was used in place of overall decibels
• Observes the excess noise energy made by the
  airport excluding the background noise

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Graphically the results look like this
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• Conclusion
• Noise, like the Reno-Tahoe study, has a negative
  impact on property values
• Proximity, however, has a positive impact on
  property values

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What does this mean for policy makers?

• Reno-Tahoe Study?
• Placing tougher noise policies could increase
  property value
• Manchester Study?
• Placing tougher noise policies could cause flight
  delays and eventually stunt the growth of the
  surrounding area

Must be looked at on a case by case bases
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• Zurich airport to pay 160,000 USD to one
  homeowner
• 19,000 more lawsuits could follow
• In 2008 the Minneapolis Airport was forced to
  provide noise mitigation for 9,560 homes totaling
  127 million
• Oakland CA. the Port of Oakland agreed to
  insulate 200 homes if the city would drop the
  lawsuit preventing an airport expansion

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Questions?
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• Espey, M., Lopez, H. (2000). The Impact of
  Airport Noise and Proximity on Residential
  Property Values. Growth and Change , 408-419.
• Tomkins, J., Topham, N., Twomey, J., Ward, R.
  (1998). Noise versus Access The Impact of an
  Airport in Urban Property Market. Urban Studies,
  Vol. 35, No. 2 , 243-258.
• http//www.swissinfo.org/eng/front/Airport_noise_t
  est_case_wins_compensation.html?siteSect108sid8
  793737cKey1204277366000tyst
• http//www.ci.minneapolis.mn.us/airportnoise/
• http//findarticles.com/p/articles/mi_qn4176/is_20
  040815/ai_n14584126

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