Empirical Determination of Environmental Assets: Noise Abatement Available to Purchase

This article deals with the determination of the benefits of environmental assets, involving an application for noise. In determining these benefits the so‐called Cost of Illness Method is applied. An important part of the research is the estimation of the relationship between environmental pollution (noise) and the number of lost workdays. This relationship is estimated by using the Lisrel technique with latent variables. The empirical results show that, for the sample concerned, a relationship between noise and lost workdays does not exist. The research also shows that noise causes annoyance and that annoyance influences people′s wellbeing negatively.