The Price of Silence: Markets for Noise Licenses and Airports
AbstractThis paper presents a market design for the management of noise pol- lution created by aircraft tra¢ c around airports. A local market for noise licenses allows noise generators to compensate noise victims. We show that the market allows the market designer to achieve his/her optimal allocation of flights provided that he/she does not over-weight the benefit of economic activity compared to the disutility of noise pollution. The fact that local rep- resentatives of noise victims may be strategic players does not fundamentally alter this finding. Because of the market auctioneer's information constraints, noise licenses are likely to distribute windfall gains to residents, which alter the urban structure in the long run.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 08-08.
Date of creation: 2008
Date of revision:
Contact details of provider:
Postal: 162a avenue de la Faïencerie, L-1511 Luxembourg
Phone: (+352) 46 66 44
Fax: (+352) 46 66 44 ext 633
Web page: http://wwwen.uni.lu/research/fdef/crea
More information through EDIRC
Other versions of this item:
- Thierry Bréchet & Pierre M. Picard, 2010. "The Price Of Silence: Markets For Noise Licenses And Airports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 1097-1125, November.
- BRECHET, Thierry & PICARD, Pierre M., . "The price of silence: markets for noise licenses and airports," CORE Discussion Papers RP -2270, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Juan-Pablo Montero, 2006.
"A simple auction mechanism for the optimal allocation of the commons,"
0608, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Juan-Pablo Montero, 2008. "A Simple Auction Mechanism for the Optimal Allocation of the Commons," American Economic Review, American Economic Association, vol. 98(1), pages 496-518, March.
- Juan Pablo Montero, 2006. "A Simple Auction Mechanism for the Optimal Allocation of the Commons," Documentos de Trabajo 311, Instituto de Economia. Pontificia Universidad Católica de Chile..
- Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
- Morrison, Steven & Winston, Clifford, 1998.
"Fundamental Flaws of Social Regulation: The Case of Airplane Noise,"
- Morrison, Steven A & Winston, Clifford & Watson, Tara, 1999. "Fundamental Flaws of Social Regulation: The Case of Airplane Noise," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 723-43, October.
- Schipper, Youdi, 2004. "Environmental costs in European aviation," Transport Policy, Elsevier, vol. 11(2), pages 141-154, April.
- A. Ellerman, 2005. "A Note on Tradeable Permits," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 31(2), pages 123-131, 06.
- BRECHET, Thierry & PICARD, Pierre M., 2010.
"The economics of airport noise: how to manage markets for noise licenses,"
CORE Discussion Papers
2010086, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BRECHET, Thierry & PICARD, Pierre M., . "The economics of airport noise: How to manage markets for noise licenses," CORE Discussion Papers RP -2427, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thierry Bréchet & Pierre M. Picard, 2010. "The Economics of Airport Noise: Managing Markets for Noise Licenses," CREA Discussion Paper Series 10-13, Center for Research in Economic Analysis, University of Luxembourg.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elisa Ferreira).
If references are entirely missing, you can add them using this form.