ECONOMIC VALUATION OF NOISE REDUCTION DUE TO VEHICLE TRAFFIC: AN APPLICATION FOR MEDELLIN (COLOMBIA)

Abstract

The objective of this paper is to determine the economic benefits ob­tained by households in residential zones in the city of Medellin (Co­lombia) by the reduction of noise and vehicle traffic. For this purpose, a contingence valuation method was used combined with information regarding the perception of the acoustic quality at the different hou­seholds. This scope led to the estimation of the expected willingness to pay for the reduction of one decibel in the noise levels that house­holds are exposed to. Results show that if this program is applied in the city through a policy or project that is able to achieve a generalized reduction of 5 decibels in the noise generated by vehicle traffic, the aggregated economic benefits can reach up to 397 million Colombian pesos per year. The study concludes that these results generate impor­tant knowledge that can be used for more effective decision-making within the regional policy framework in respect with noise reduction management due to vehicle traffic.