In urban and regional economics, causal inferences necessitate comprehensive data analysis, taking into account spatial and temporal factors and recognizing that neighboring areas may exhibit similarities yet differences. Spatial settings present challenges, such as spillover effects and regional idiosyncrasies, which complicate the identification of true treatment effects. Some urban variables, such as access to green areas or environmental noise, are challenging to measure directly. Economists employ methodologies such as the hedonic price framework to illustrate the influence of neighborhoods and to detect previously unobserved relationships. These considerations also extend to the policy sector, where policymakers must recognize that the heterogeneities, as well as similarities across time and space, can counteract national strategies. Germany's diverse population density serves to illustrate this complexity. The thesis presents evidence in three chapters that large-scale interventions, whether political or non-political, can have an impact. However, the degree of effectiveness is contingent upon regional and temporal factors, which can influence the outcomes at the local level. In Chapter 1, I investigate the impact of railroad noise on property values in Germany, focusing on the Railroad Noise Protection Act (RNPA) and its effect on nearby residents. Using detailed data on house prices and railway routes, I employ a difference-in-differences approach to assess the impact of noise reduction. The gradual implementation of the RNPA led to a 0.5 % increase in house prices upon announcement and an additional 2.5 % increase upon full prohibition in 2020. The analysis shows that the positive effects diminish with distance from the tracks, with no measurable effect beyond 1km. However, areas exposed to various sources of noise, including railways, airports, and industrial sites, benefit the most from the RNPA, with price increases of up to 6.9 %. This highlights the effectiveness of targeted policies in addressing multiple noise sources. In Chapter 2, co-authored with Philipp Breidenbach, we examine the impact of aircraft noise pollution on housing prices. This chapter builds on the analysis of railroad noise in Chapter 1. We utilize strategic noise maps and the COVID-19 pandemic as a quasi-experimental event to investigate the effect of reduced air traffic noise on housing prices. The study reveals a 2.3 % increase in prices for apartments previously affected by noise during quieter periods, with the effect peaking at 6 % in 2021 and dissipating by 2022. The immediate responses challenge the notion of sticky housing markets, suggesting possible information asymmetries and future developments in the aviation industry as contributing factors to the observed effects. In Chapter 3, which is co-authored with Manuel Frondel and Colin Vance, the focus shifts from the analysis of the disamenity of noise to the policy evaluation of tax reductions. In particular, the Fuel Tax Discount (FTD) introduced by the German government in response to surging fuel prices is examined. The extent to which the tax reductions are passed on to consumers is investigated, as well as variations over time and space. High-frequency data from Germany and France indicate that 96 % of the diesel fuel tax reduction was passed on to consumers, while the pass-through for petrol only reached 86 %. This suggests that the policy was effectively implemented. However, the pass-through diminished over time, with only small fractions transmitted by the end of the FTD period. Regional disparities show that low-income areas benefited more from the FTD, but the diminishing effects persisted across regions.

Universität Duisburg-Essen

DOI: 10.17185/duepublico/81877