A comparison of hedonic price and stated preference methods to derive monetary values for aircraft noise disturbance and annoyance

This paper compares monetary values for aircraft noise disturbance and annoyance derived using hedonic price and stated preference methods in the same sample areas and over the same sampling time periods. The hedonic price method compares house prices in residential areas across a range of aircraft noise sound levels. The statistical power can be compromised by the many other variables which have significant and often greater effects on prices and because only small fractions of the overall housing stock are bought and sold at any one time. The stated preference method on the other hand, by requiring study participants to trade hypothetical money against hypothetical noise, is entirely based on subjective opinion. It seems that neither method is entirely satisfactory, but there are strong positive correlations between the ratios of aggregated stated preference values to weighted average house prices and LAeq, 16 h and similar noise metrics suggesting sufficient underlying similarities

► We compared aircraft noise on property prices around seven UK airports. ► We developed a stated preference methodology and hedonic price equation. ► We compared stated preference and hedonic price data. ► We studied the ratios of SP against HPM results. ► We have shown high correlation between LAeq, 16 h and ratio SP values.