* The paper benefited greatly from comments and suggestions from Richard Carson, Giulia Ferrari, Guy Mayraz, and an anonymous referee. All the errors are the author's.
THE HAPPINESS-REDUCING COSTS OF NOISE POLLUTION*
Article first published online: 16 NOV 2012
© 2012, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 53, Issue 2, pages 292–303, May 2013
How to Cite
Weinhold, D. (2013), THE HAPPINESS-REDUCING COSTS OF NOISE POLLUTION. Journal of Regional Science, 53: 292–303. doi: 10.1111/jors.12001
- Issue published online: 26 APR 2013
- Article first published online: 16 NOV 2012
- Received: March 2011; revised: January 2012; accepted: May 2012.
ABSTRACT This analysis examines the costs of everyday residential noise pollution using a series of “happiness regressions.” We control for both the possibility that an unobservable characteristic may cause omitted variable bias, as well as for the possibility of endogeneity bias if “effort” is not adequately taken into account. We find perceived noise pollution to exert a negative and highly significant effect on happiness. We then calculate the required income transfer to compensate for the noise and find the costs of noise pollution to be on the order of €172 per month per household.