Airport noise and residential property values: Evidence from Beijing

Abstract

Cities are used to develop in the vicinity of transport hubs : formerly near waterways and ports, then around railways and highways. More recently, globalization requires cities to contribute to the international flows of passengers, goods and information. Thus, air transportation industry plays a major role in the economic development of an urban area. In China, the number of civil airports increased significantly in recent years. Most airports are built in suburban areas because noise generated by airports is considered as a disamenity towards neighboring areas. Some scholars have already studied this phenomenon - particularly in North America and Europe. In China, although this issue receives wide media coverage, the question is still discussed in the academic circle. The paper is based on transaction data in residential areas close to Beijing Capital International Airport. By using econometric models and estimating them via the hedonic price method, we derive the impact of aircraft noise on the willingness to pay for residential properties. The results suggest that a 1 dB increase in noise exposure leads to a 1.05-1.28% depreciation of property values. This estimate is on the high side compared to other international NDI studies. © 2014 Springer-Verlag Berlin Heidelberg.