Property prices in urban areas affected by road traffic noise

This paper reports a revealed preference study into the different effects of road traffic noise on property values in residential areas with similarly high road traffic sound levels but with what appear to be important differences in the market for different types of residential property in each area. The results show significant differences in the revealed effects of noise on property prices between the three areas with in one case an increasing (and possibly misleading) relationship between higher monetary values and higher sound levels. A number of possible explanations for the findings are discussed in the paper.