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Adjustments in the housing market after an environmental shock: evidence from a large-scale change in aircraft noise exposure

The impact of aircraft noise on housing is a much-debated topic. To meet the increasing demand for air transportation, airports seek to expand their capacities, but studies looking at market responses to a spatial redistribution of noise pollution are scarce. Using online advertisements of rental ap...

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Bibliographic Details
Main Authors: Almer, Christian Alexander (Author) , Boes, Stefan (Author) , Nüesch, Stephan (Author)
Format: Article (Journal)
Language:English
Published: 12 January 2017
In: Oxford economic papers
Year: 2017, Volume: 69, Issue: 4, Pages: 918-938
ISSN:1464-3812
DOI:10.1093/oep/gpw071
Online Access:Verlag, Volltext: http://dx.doi.org/10.1093/oep/gpw071
Verlag, Volltext: https://academic.oup.com/oep/article/69/4/918/2900582
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Author Notes:by Christian Almer, Stefan Boes, and Stephan Nüesch
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Summary:The impact of aircraft noise on housing is a much-debated topic. To meet the increasing demand for air transportation, airports seek to expand their capacities, but studies looking at market responses to a spatial redistribution of noise pollution are scarce. Using online advertisements of rental apartments around a large European airport (ZRH) and an unexpected change in flight regulations, we investigate the post-shock dynamics in apartment rents and tenants’ search behaviour. We find that rents take about two years to stabilise to a new equilibrium value. After this period there is a constant markup (discount) for apartments exposed to less (more) aircraft noise. Moreover, the number of advertisement clicks as a proxy for search behaviour and information acquisition is significantly higher during the adjustment period. Our results have implications regarding the calculation of capitalisation effects in quasi-experimental hedonic valuations, which need to take into account off-equilibrium periods.
Item Description:Gesehen am 30.04.2018
Physical Description:Online Resource
ISSN:1464-3812
DOI:10.1093/oep/gpw071

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