Journal of Environmental Economics and Policy vol:4 issue:1 pages:15-44
In this paper, we empirically test the stability of valuation estimates of road trafﬁc noise based on house prices. A hedonic valuation model is constructed and estimated for two separate housing markets in Belgium. We estimate noise depreciation sensitivity index (NDSIs) for different modelling choices for both markets separately, jointly and taking into account spatial dependency. The results conﬁrm that housing markets are region-speciﬁc and several housing characteristics are valued differently across regions. The effect of road noise, however, appears to be rather robust. Thus, the use of NDSI estimates from one region to value trafﬁc noise in another region seems to be acceptable.