Generally, two different approaches are used to estimate the costs of traffic noise:
1. The bottom-up approach
2. The top-down approach
The bottom-up approach is generally called the ‘impact pathway approach’. The starting point of this approach is at the micro level, i.e. the traffic flow on a particular route.
The starting point of the top-down approach is at the macro level, i.e. the estimated cost for a country. The top-down approach uses the Willingness to Pay (WTP) or the willingness to accept compensation for more silence, and the associated health effects, and multiplies these unit values with the data on noise exposure for different noise classes.
The top-down approach calculates the average value of transportation costs. It uses the total noise exposure (differentiated for noise classes) and divides it by total mileage driven on that road. In addition, different methods can be applied to value the effects of transport noise. In some cases market prices can be used to value the effects of transport noise (e.g. cost of illness). However, for annoyance effects no market prices exist, and the Willingness to Pay (WTP) approach should be used. Generally, there are two valuation methods including the hedonic valuation method (HVM) and the contingent valuation method (CVM). The HVM examines differences in housing prices due to traffic noise, whilst, HVM is based on “WTP” calculations (
23,
24). In other words, CVM evaluates the Willingness to Pay (WTP) or the Willingness to Accept (WTA) changes in environmental goods and services, through questioning people directly. To determine peoples’ reaction in specific situations, this direct questioning approach is used. This is performed by deduction of individuals’ behavior in terms of their responses to the questions. In fact, since there is no market for environmental quality of air, water, soil, and other environmental goods, the economic evaluation of these environmental goods is done by, estimation of WTP. On the other hand, when environmental damage occurs, injuries and damages are engendered. Therefore, one can point directly that, the benefits of improving environmental quality is made by reduction in loss (
25). The contingent valuation method was presented to estimate the WTP for five levels of annoyance in Europe during 2006. Finally, the mean WTP per person per year to eliminate road noise annoyance at the five levels was presented (WTP per person per year for not annoyed, slightly annoyed, moderately annoyed, very annoyed and extremely annoyed was 8.12, 37.08, 84.93, 84.30, 80.51€, respectively (€ 2005)) for six European countries (
26).
The present study was carried out in Tabriz city during year 2011 (1390 in Iranian calendar). To obtain the 24-hour noise exposure level (Lden), the level of noise was measured in 35 stations of the ten districts (based on civic divisions, covering all the areas particularly busy squares, intersections and highways) of Tabriz city during the morning, afternoon, evening and night. This was done by considering overcrowding, exposure level and people’s daily travels and freight. To do so, noise pollution was measured during the following hours, 6 to 8 in the morning 12.5 to 14.5 at noon, 17 to 19 in the afternoon and 22 to 24 at night, and during these hours, the one hour average noise level (L1h(i)) was obtained for each station. Next, to find the effects of noise at different distances, and to obtain the number of people exposed to a certain level of noise, the annoyance levels due to traffic noise were assessed for 300 Tabriz residents, using a questionnaire. Samples included one individual between 18 and 80 years old in each family who had lived for at least one year at his/her current location. The questionnaire consisted of two parts. The first part consisted of demographic information and individual’s residential information, as well as people annoyance and disruption in everyday function. The second part of the questionnaire consisted of the mental and physical effects of noise, such as sleep disturbances, depression, headaches, etc.
Questionnaire content validity was then reviewed and approved by a panel of experts including three experts in the field of occupational health and ergonomics. Its reliability was calculated by a pilot study of 30 patients with Cronbach’s alpha and internal consistency. Cronbach’s alpha value was equal to 0.75. When applying a questionnaire as part of a research method, the number of samples should be a multiple of at least five, of the number of questions. In this study, the questionnaire consisted of 41 questions. Hence, 300 Tabriz residents around the squares, intersections and highways, and at different distances from these locations were selected. Finally, the amount of traffic noise cost was calculated. To calculate the cost, three steps were taken, as follows:
1) Defining the threshold value (a value below which there is no considerable annoyance). Based on the recommendations of the European commission (
18) and WHO, the threshold value is 55 dB.
2) Determining the number of people exposed to a certain level of noise (Lden).
3) Evaluation in terms of money in each region: at this stage, the following equation (Essen H, 2004, equation 1 (
21)) was used to calculate the costs. Based on the recommended value by the European commission, 10 Euros per (decibel) person per year was used (2004 Euros).

(1)

(2)

(3)

(4)

(5)
Equation 2 was used to obtain one hour average noise level (L
1h (i)), for 15 hours during the day, whilst
Equation 3 and
Equation 4 were applied to obtain one hour average noise level (L
1h (i)) during the evening and night, respectively. By using
Equation 5, 24 hours noise level was then calculated. In order to apply the impact of time of the day into account; uses a weighted noise measure to take evening noise carries a penalty of 5 dB (A) and night noise carries a penalty of 10 dB (A) (Equation 5). When L
den was obtained, its value was corrected based on various distances from the stations. This was done by using the results of people annoyance, which was categorized in five groups including; not annoyed, slightly annoyed, moderately annoyed, very annoyed and extremely annoyed. For this purpose, the link between annoyance and L
den that was provided by the European commission and WHO was used. On this basis, for extremely annoyed individuals, L
den value was calculated from the noise measurement at 35 stations in 10 regions of the city, and for moderately annoyed and very annoyed groups, L
den 24 hours noise level was calculated (without correction). For not annoyed and slightly annoyed individuals, as the obtained L
den value was less than the cut-off value, L
den was not calculated.