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Aircraft Noise Regulation, Airline Service Quality, and Social Welfare: the Monopoly Case

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  • Raquel Girvin

Abstract

This paper develops a simple theoretical model to analyse the effects of noise regulation on a monopoly airline's flight frequency, traffic volume, and aircraft 'quietness' choices. Two types of noise limit are considered: a cumulative limit on total noise at an airport and a limit on noise per aircraft operation. Tighter noise limits, which reduce community exposure to noise, cause airlines to reduce flight frequency and traffic served, thus hurting consumers. A welfare analysis explores socially optimal noise regulation, taking into account the social cost of noise damage along with consumer surplus and airline profit. © 2010 LSE and the University of Bath

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  • Raquel Girvin, 2010. "Aircraft Noise Regulation, Airline Service Quality, and Social Welfare: the Monopoly Case," Journal of Transport Economics and Policy, University of Bath, vol. 44(1), pages 17-35, January.
    • Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:1:p:17-35
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    Cited by:

    1. Evangelinos, Christos & Püschel, Ronny & Niemeier, Hans-Martin, 2020. "Special interest groups and price-structure: An application to noise charging at Zurich Airport," Research in Transportation Economics, Elsevier, vol. 79(C).
    2. Chen, Yongmin & Gayle, Philip G., 2019. "Mergers and product quality: Evidence from the airline industry," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 96-135.
    3. Yimga, Jules, 2022. "Code-sharing agreements and path quality in the US airline industry," Transport Policy, Elsevier, vol. 116(C), pages 369-385.
    4. 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.
    5. Kiani Sadr, Maryam & Nassiri, Parvin & Hosseini, Mohsen & Monavari, Masoud & Gharagozlou, Alireza, 2014. "Assessment of land use compatibility and noise pollution at Imam Khomeini International Airport," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 49-56.
    6. Yimga, Jules, 2017. "Airline on-time performance and its effects on consumer choice behavior," Research in Transportation Economics, Elsevier, vol. 66(C), pages 12-25.
    7. Aasheesh Dixit & Patanjal Kumar & Suresh Jakhar, 2021. "Airport-Airline Coordination with Economic, Environmental and Social Considerations," Papers 2110.11694, arXiv.org.

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