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Airport noise regulation, airline service quality, and social welfare

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  • Brueckner, Jan K.
  • Girvin, Raquel

Abstract

This paper explores the impact of airport noise regulation on airline service quality and airfares. It also characterizes the socially optimal stringency of noise limits, taking both noise damage and the various costs borne by airlines and their passengers into account. The analysis also investigates the effect of noise taxes, as well as the optimal level of such taxes. Along with the companion paper by [Girvin, R., 2006a. Airport noise regulation, airline service quality, and social welfare: The monopoly case. Unpublished paper, Program in Transportation Science, UC, Irvine], this work represents the first complete theoretical investigation into the economics of airport noise regulation using a model where the interests of the key relevant stakeholders are captured.

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Bibliographic Info

Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

Volume (Year): 42 (2008)
Issue (Month): 1 (January)
Pages: 19-37

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Handle: RePEc:eee:transb:v:42:y:2008:i:1:p:19-37

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References

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  1. Morrison, Steven & Winston, Clifford, 1998. "Fundamental Flaws of Social Regulation: The Case of Airplane Noise," Working paper 335, Regulation2point0.
  2. Schipper, Youdi & Nijkamp, Peter & Rietveld, Piet, 1998. "Why do aircraft noise value estimates differ? A meta-analysis," Journal of Air Transport Management, Elsevier, vol. 4(2), pages 117-124.
  3. Schipper, Youdi & Rietveld, Piet & Nijkamp, Peter, 2003. "Airline deregulation and external costs: a welfare analysis," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 699-718, September.
  4. Zhang, Anming & Zhang, Yimin, 2003. "Airport charges and capacity expansion: effects of concessions and privatization," Journal of Urban Economics, Elsevier, vol. 53(1), pages 54-75, January.
  5. Morrison, Steven A., 1987. "The equity and efficiency of runway pricing," Journal of Public Economics, Elsevier, vol. 34(1), pages 45-60, October.
  6. Oum, Tae Hoon & Zhang, Yimin, 1990. "Airport pricing : Congestion tolls, lumpy investment, and cost recovery," Journal of Public Economics, Elsevier, vol. 43(3), pages 353-374, December.
  7. Jan K. Brueckner, 2004. "Network Structure and Airline Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 52(2), pages 291-312, 06.
  8. Jan Brueckner & Ricardo Flores-Fillol, 2007. "Airline Schedule Competition," Review of Industrial Organization, Springer, vol. 30(3), pages 161-177, May.
  9. Jon P. Nelson, 2004. "Meta-Analysis of Airport Noise and Hedonic Property Values," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 38(1), pages 1-27, January.
  10. McMillen, Daniel P., 2004. "Airport expansions and property values: the case of Chicago O'Hare Airport," Journal of Urban Economics, Elsevier, vol. 55(3), pages 627-640, May.
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Cited by:
  1. Zou, Bo & Hansen, Mark, 2012. "Flight delays, capacity investment and social welfare under air transport supply-demand equilibrium," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 965-980.
  2. Adler, Nicole & Gellman, Aaron, 2012. "Strategies for managing risk in a changing aviation environment," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 24-35.
  3. Brueckner, Jan K. & Zhang, Anming, 2010. "Airline emission charges: Effects on airfares, service quality, and aircraft design," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 960-971, September.
  4. Hugo E. Silva & Erik T. Verhoef & Vincent A.C. van den Berg, 2012. "Airlines' Strategic Interactions and Airport Pricing in a Dynamic Bottleneck Model of Congestion," Tinbergen Institute Discussion Papers 12-056/3, Tinbergen Institute, revised 15 Jul 2013.
  5. Girvin, Raquel, 2009. "Aircraft noise-abatement and mitigation strategies," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 14-22.
  6. Jan K. Brueckner & Ricardo Flores-Fillol, 2006. "Airline Schedule Competition: Product-Quality Choice in a Duopoly Model," CESifo Working Paper Series 1731, CESifo Group Munich.
  7. Silva, Hugo E. & Verhoef, Erik T. & van den Berg, Vincent A.C., 2014. "Airlines’ strategic interactions and airport pricing in a dynamic bottleneck model of congestion," Journal of Urban Economics, Elsevier, vol. 80(C), pages 13-27.
  8. Givoni, Moshe & Rietveld, Piet, 2010. "The environmental implications of airlines' choice of aircraft size," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 159-167.
  9. Adler, Nicole & Martini, Gianmaria & Volta, Nicola, 2013. "Measuring the environmental efficiency of the global aviation fleet," Transportation Research Part B: Methodological, Elsevier, vol. 53(C), pages 82-100.
  10. Sieg, Gernot, 2009. "Grandfather rights in the market for airport slots," Economics Department Working Paper Series 4, Technische Universität Braunschweig, Economics Department.

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