May 1, 2015 35 pp.

Residential Sorting and Environmental Externalities: the Case of Non-linearities and Stigma in Aviation Noise Values

Notes

Academic journal article by Sotirios Thanos, Abigail L. Bristow, and Mark R. Wardman, published in the Journal of Regional Science (May 2015), examining residential sorting in response to aviation noise exposure in a housing market. Uses Spatiotemporal Hedonic Pricing (HP) and Stated Choice (SC) methods to quantify nonlinear noise depreciation ranging from 0.40 to 2.38 percent per decibel, stigma effects on house prices after noise removal, and lower stated-preference noise values among long-term high-noise-exposure residents. Funded by EUROCONTROL Experimental Centre. Keywords: aviation noise, hedonic pricing, residential sorting, spatial econometrics, stigma, nonlinear noise values, environmental externalities, property values.

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As the source for federal transportation grants, the Puget Sound Regional Council was charged with developing a system to meet the growing need for commercial aviation. When the search for a second airport failed, they authorized the Port of Seattle to build the Third Runway, with a mandate to develop a noise abatement and mitigation program. In their effort to stop the Third Runway, the ACC argued over every detail of the Port's efforts--including property buyouts and sound insulation. The dispute was meant to be settled by a three member Expert Arbitration Panel. This is their final report. It finds 2-1, that the Port's program was insufficient in several respects. Despite that, funding for the Third Runway was approved by the PSRC, and the 'Port Package' program, proceeded largely unchanged. Expert Arbitration Panel's final decision finding that the Port of Seattle had not shown sufficient reduction in real on-the-ground noise impacts to satisfy noise reduction conditions required for approval of a third runway at Sea-Tac International Airport. The majority decision concluded the Port's noise abatement programs were insufficient despite being impressive in scope.

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