Abstract:
The objective of this paper is to provide an empirical analysis of the influence of traffic noise has on the
housing market. Traffic noise can be considered as an environmental externality from road transport system.
As so, it affects the value that people are willing to pay for their houses. The value of this effect has already
been studied by some authors, with Stated Preference-choice (SP-choice) methods, the hedonic pricing
model, or others. The approach used in this study combines traditional methods, namely linear modelling
techniques used for quantifying the effect on housing prices fluctuation, with newer methods as the spatial
analysis associate d to Geographical Information Systems. There are obvious advantages by using GIS as
adding spatial analytical capabilities in terms of increasing its functionality and meeting a demand for
systems that do something beyond storing, retrieving and displaying large amounts of information. This
study was developed for the city of Lisbon, Portugal. A geographical database was created combining
information from the Census, on the housing characteristics, with renting and sales activities. This study
applies two different techniques to identify the relation between traffic noise and the variation on the housing
value in Lisbon, and aims to contribute to the scientific knowledge of housing market in Lisbon, with detailed
and accurate information on the factors affecting its variation.