Performance and shortcomings of typical environmental pollution control programs for automobile traffic in Kobe city and surrounding areas. Social cost evaluation of noise pollution by hedonic price method

This paper evaluates the environmental cost due to automobile traffic pollution in the Kobe Region, Japan. The empirical analysis was carried out, using the hedonic price method, on the ambient noise, land prices, and other data in the Route 43 roadside areas of two municipalities, where the environmental deterioration problem is most serious. Regression analysis consists of two steps. The first step is to establish a noise level estimation model, while, on the second step, the land price data are regressed by several explanatory variables including noise levels data obtained by the noise estimation model. The results show significant and expected impact of the Route 43 oriented noise on the property value.