TY  - RPRT
        AU  - Praag, Bernard M. S. van
AU  - Baarsma, Barbara E.
        TI  - Using Happiness Surveys to Value Intangibles: The Case of Airport Noise
        PY  - 2004/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1096
        UR  - https://www.iza.org/publications/dp1096
        AB  - Inhabitants of houses near Amsterdam Airport are complaining of noise nuisance, caused by
aircraft traffic. The usual assumption is that the effect of the externality will be perfectly
reflected by house price differentials. This is based on the implicit assumption that there is a
well-functioning housing market. If that is not true, we need a correction method in order to
assess the intangible damage. We assess the monetary value of the noise damage, caused
by aircraft noise nuisance around Amsterdam Airport as the sum of hedonic 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.
        KW  - cost-benefit analysis
KW  - externalities
KW  - airport noise
KW  - satisfaction analysis
KW  - residual shadow costs
        ER  -