Open AccessUsing Happiness Surveys to Value Intangibles: The Case of Airport Noise *
Author(s) -
Van Praag Bernard M. S.,
Baarsma Barbara E.
Publication year - 2005
Publication title -
the economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.683
H-Index - 160
eISSN - 1468-0297
pISSN - 0013-0133
DOI - 10.1111/j.1468-0297.2004.00967.x
Subject(s) - happiness , value (mathematics) , sociology , media studies , classical economics , economics , political science , law , mathematics , statistics
We assess the monetary value of the noise damage, caused by aircraft noise nuisance around Amsterdam Airport, as the sum of hedonic house 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.