Noisy Neighborhood but Nice House? Pollution and the Choice of Residential Location and Housing Quality

Samuel Lindgren

Abstract

This study analyzes how information about noise pollution impacts 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 post-announcement selected homes of better quality. These results help reconcile mixed findings on residential sorting in the literature.

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