The value of noise reduction based on the contingent valuation method and the hedonic pricing method

The hedonic pricing and the contingent valuation methods are applied to determine the value of reduction in road traffic noise for urban residents in the city of Copenhagen. Higher values of noise reduction - ranging from 13 to 22 EUR per dB per year - are found using the hedonic pricing method as compared with the contingent valuation method, where the household value of noise reduction ranges from 2 to 11 EUR per dB per year. It is argued that the value of noise reduction obtained from both the hedonic pricing and the contingent valuation methods potentially may be upward biased. Therefore, it is recommended that the more conservative values of the contingent valuation study should be used in social cost-benefit analyses for noise reduction projects.