The Shadow Price of Aircraft Noise Nuisance

Bernard M.S. van Praag () and Barbara E. Baarsma ()

No 00-004/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper has a twofold objective. First, we develop a new method to assess the monetary value for individuals of external effects (viz., aircraft noise nuisance) which are not or only partly internalized in market prices. The method makes use of an ordinal index of life satisfaction as scored by individual respondents who are subjected in varying intensity to the external effect. Our second objective is to assess, with this method, to what extent noise nuisance effects around Amsterdam Airport Schiphol are internalized and what should be the monetary compensation for the nuisance. Such a compensation scheme depends on, among other things, the objective noise level, income and the presence of noise insulation. The results are both significant and plausible. The method is generally applicable.

New Economics Papers: this item is included in nep-env and nep-ind
Date: 2000-02-10
View list of references View citations in EconPapers

Downloads: (external link)
http://www.tinbergen.nl/discussionpapers/00004.pdf (application/pdf)

Related works:
Working Paper: The Shadow Price of Aircraft Noise Nuisance (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:dgr:uvatin:20000004

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute
Series data maintained by Walther Schoonenberg ().