Earlier versions of this paper may be found in Baarsma (2000) and Van Praag and Baarsma (2001). We are grateful to J. G. de Wit and the staff of the Directorate General of Civil Aviation of the Dutch Ministry of Transport for giving us valuable comments. We thank J. Peter Hop for his assiduous support in analysing the data. This version of the paper has greatly benefited from the constructive but critical comments by David de Meza.
Using Happiness Surveys to Value Intangibles: The Case of Airport Noise*
Version of Record online: 22 DEC 2004
The Economic Journal
Volume 115, Issue 500, pages 224–246, January 2005
How to Cite
Van Praag, B. M. S. and Baarsma, B. E. (2005), Using Happiness Surveys to Value Intangibles: The Case of Airport Noise. The Economic Journal, 115: 224–246. doi: 10.1111/j.1468-0297.2004.00967.x
- Issue online: 22 DEC 2004
- Version of Record online: 22 DEC 2004
- Date of receipt of first submission: January 2002 Date of receipt of final typescript: March 2004
We assess the monetary value of the noise damage, caused by aircraft noise nuisance around Amsterdam Airport, as the sum of hedonic house price differentials and a residual cost component. The residual costs are assessed from a survey, including an ordinal life satisfaction scale, on which individual respondents have scored. The derived compensation scheme depends on, among other things, the objective noise level, income, the degree to which prices account for noise differences, and the presence of noise insulation.