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Homeownership and NIMBYism: A Spatial Analysis of Airport Effects

Author

Listed:
  • Gabriel M. Ahlfeldt
  • Wolfgang Maennig
Abstract
This study evaluates the cost of aircraft noise in Berlin, Germany, on the background of the home-voter hypothesis, which has received increasing attention in the literature. First, we use exogenous variation in airport noise provided by a series of effective and announced closures and extensions of airports to identify adjustments in the property market. Second, we integrate the results of the property market analysis into a spatial analysis of a direct referendum on an airport closure. Our results indicate that aircraft noise is costly. We observe significant positive market adjustments to reductions in aircraft noise. Consistently, voters supported the closure of a city airport where aircraft noise was present and positive price adjustments from a past announcement had occurred. Homeowners had significantly stronger preferences than renters, which is in line with the home-voter hypothesis. We conclude results from direct referenda on public initiatives should be interpreted with care when it comes to evaluating (expected) environmental effects.

Suggested Citation

  • Gabriel M. Ahlfeldt & Wolfgang Maennig, 2011. "Homeownership and NIMBYism: A Spatial Analysis of Airport Effects," SERC Discussion Papers 0085, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:sercdp:0085
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    File URL: http://cep.lse.ac.uk/pubs/download/sercdp0085.pdf
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    References listed on IDEAS

    as
    1. Ahlfeldt, Gabriel M. & Wendland, Nicolai, 2009. "Looming stations: Valuing transport innovations in historical context," Economics Letters, Elsevier, vol. 105(1), pages 97-99, October.
    2. Brunner, Eric & Sonstelie, Jon, 2003. "Homeowners, property values, and the political economy of the school voucher," Journal of Urban Economics, Elsevier, vol. 54(2), pages 239-257, September.
    3. J. Tomkins & N. Topham & J. Twomey & R. Ward, 1998. "Noise versus Access: The Impact of an Airport in an Urban Property Market," Urban Studies, Urban Studies Journal Limited, vol. 35(2), pages 243-258, February.
    4. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    5. Christian A. L. Hilber & Christopher J. Mayer, 2004. "Why Do Households Without Children Support Local Public Schools?," NBER Working Papers 10804, National Bureau of Economic Research, Inc.
    6. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
    7. Gabriel M. Ahlfeldt, 2011. "The Train has Left the Station: Do Markets Value Intracity Access to Intercity Rail Connections?," German Economic Review, Verein für Socialpolitik, vol. 12(3), pages 312-335, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gabriel Ahlfeldt & Kristoffer Möller & Sevrin Waights & Nicolai Wendland, 2012. "On prisoner's dilemmas and gilded cages: The economics of heritage preservation," ERSA conference papers ersa12p783, European Regional Science Association.
    2. Heiko Kirchhain & Jan Mutl & Joachim Zietz, 2020. "The Impact of Exogenous Shocks on House Prices: the Case of the Volkswagen Emissions Scandal," The Journal of Real Estate Finance and Economics, Springer, vol. 60(4), pages 587-610, May.
    3. Tim Winke, 2017. "The impact of aircraft noise on apartment prices: a differences-in-differences hedonic approach for Frankfurt, Germany," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1283-1300.

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    More about this item

    Keywords

    noise; rents; referendum; real estate prices; airports; Berlin;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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