To Örebro University

Traffic noise is a widespread problem that adversely affects health and well-being. A key policy question is how the benefit of noise mitigation compares with the cost. This study estimates the benefits of noise mitigation by its capitalization into property values. Using a dataset on properties considered for a noise mitigation programme, I estimate a difference-in-differences model that compares prices of properties receiving a measure to properties ineligible for the programme. Results show that noise mitigation raised property prices by 10-12 percent. The property price benefits exceed programme investment cost with each $1 spent on noise mitigation generating up to $1.7 in benefits.

This study analyzes how information about noise pollution affects neighborhood composition and households' choice of housing quality. I find that the announcement of a renewal of an airport operating contract induced high-income households to shift away from the zone exposed to airport noise. High-income households who still located in the airport noise zone after the announcement selected homes of better quality. These results help reconcile mixed findings on residential sorting in the literature. (JEL Q53, R21)

The objective of the thesis is to estimate the health and housing market effects of environmental policies and estimate how these effects are distributed among individuals.

The first essay estimates the health effects of a noise mitigation program that provided dwelling insulation and noise barriers. The analysis is based on hospitalization records and an event study model that compares disease rates for residents in treated homes to residents with similar attributes in untreated homes. Results show that noise mitigation reduced the risk of a cardiovascular disease by 12–14 percent after ten years. Effects are driven by a reduced risk of hypertension and stroke and occur primarily among those with lower income and education levels.

The second essay investigates the impact of the same noise mitigation program on property prices. Using records on sales prices and property attributes in a difference-in-difference model, I estimate the price effect to be 10–12 percent, with larger price effects for homes with poor initial exterior quality. Price gains are smaller for top earners, since they sort to high-quality properties that benefit less from noise mitigation.

The third essay examines how information about pollution affects neighborhood composition and households' choice of housing quality. Combining data on sales prices, property attributes and household demographics, I find that the announcement of an airport concession renewal induced higher-income households to sort away from the area exposed to airport pollution. Higher-income households that located to the area selected homes with better quality. These results help reconcile mixed findings on residential sorting behavior in the literature.

The fourth essay estimates the effect of shipping emission standards on air quality and health. The tightening of the sulfur emission standard reduced concentrations of sulfur dioxide by 22 percent and fine particles by 6 percent. In the subsample with air quality readings, the risk of low birthweight dropped by 7 percent.

This study explores the stricter cap on the sulfur content in marine fuel implemented in seas in north-western Europe in 2015. The analysis is built on a difference-in-differences design that compares outcomes in coastal areas before and after the tightening of the sulfur cap, to the outcomes in control areas over the same period. The results show that the new sulfur cap reduced annual average ambient concentrations of sulfur dioxide (SO2) in coastal areas by 22 percent and levels of fine particulate matter (PM2.5) by 6 percent, compared to control areas. In the subsample with available air quality readings, the sulfur cap led to a 7 percent reduction in the risk of low birthweight in coastal areas. The estimated improvements provide a benchmark for assessing the benefits of tightening sulfur standards in other settings.