This paper has a twofold objective. First, we develop a new method to assess the monetary value for individuals of external effects. 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.
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Find related papers by JEL classification: D62 - Microeconomics - - Welfare Economics - - - Externalities D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
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Clark, Andrew E & Oswald, Andrew J, 1994.
"Unhappiness and Unemployment,"
Economic Journal,
Royal Economic Society, vol. 104(424), pages 648-59, May.
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Katrin Rehdanz & David J. Maddison, 2003.
"Climate and Happiness,"
Working Papers
FNU-20, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
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