A sound investment? Traffic noise mitigation and property values

Traffic noise is a widespread problem that adversely affects health and well-being. A key policy question is how the benefit of noise mitigation compares with the cost. This study estimates the benefits of noise mitigation by its capitalization into property values. Using a dataset on properties considered for a noise mitigation programme, I estimate a difference-in-differences model that compares prices of properties receiving a measure to properties ineligible for the programme. Results show that noise mitigation raised property prices by 10–12 percent. The property price benefits exceed programme investment cost with each $1 spent on noise mitigation generating up to $1.7 in benefits.