Fly or Cry: Is Airport Noise Costly?

Airport noise is costly. Airport location is typically associated with lower property prices. Airport expansion often sparks protests by local residents. In this paper, I provide new evidence on the costs of airport-related noise (and other disamenities of airports) for individuals. In contrast to previous work, I analyze voting results on restricting airport operations. Using data from a referendum on the closure of one of Berlin’s inner-city airports, Tempelhof, I find that voting behavior is not primarily explained by exposure to airport disamenities. Rather, strong opposition to closure in the vicinity of Tempelhof indicates that adaptive preferences may be important.