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Aircraft Noise Exposure and Market Outcomes in the US

Project Number: 072
Category: Noise

While enplanements at U.S. airports have increased by almost 50% over the past two decades, the number of Americans exposed to significant levels of aircraft noise has decreased substantially. However, there is still considerable concern within some airport communities about aircraft noise. This project will leverage revealed-preference approaches to infer the “implicit price” of aircraft noise exposure from market outcomes in U.S. airport communities. More specifically, the research team will quantify the capitalized disutility associated with aircraft noise exposure through analyzing the empirical relationship between aircraft noise exposure and transaction values for residential properties in communities surrounding a sample of U.S. airports. State-of-the-art empirical methods will be applied, which will leverage quasi-experimental settings of noise exposure changes, e.g. the opening of new runways or flight procedure changes. The project will empirically analyze the house price impacts of potential changes in noise exposure associated with the quasi-experiment settings. The results will not only provide insights into the average impacts of noise exposure on residential property values but will also assess dynamic adjustment processes as well as potential heterogeneities in revealed preferences, targeting factors such as time, location, or noise exposure patterns.

Outcomes

This project will quantify the capitalized impact of aircraft noise exposure on transaction values for residential properties, which is often considered a measure of the capitalized external cost associated with noise exposure. The results will complement existing community studies focusing on stated preferences of the population in airport communities. Furthermore, the project aims to study heterogeneities in the capitalized house price effects, which can guide policymakers in prioritizing projects aiming to reduce the perceived impact of aircraft noise in airport communities.

Last Updated 9/20/2022

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