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


  • Raquel Girvin


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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    References listed on IDEAS

    1. Engel, Eduardo M. R. A. & Galetovic, Alexander & Raddatz, Claudio E., 1999. "Taxes and income distribution in Chile: some unpleasant redistributive arithmetic," Journal of Development Economics, Elsevier, vol. 59(1), pages 155-192, June.
    2. Cropper, Maureen & Bhattacharya, Soma, 2007. "Public transport subsidies and affordability in Mumbai, India," Policy Research Working Paper Series 4395, The World Bank.
    3. Kristin Komives & Vivien Foster & Jonathan Halpern & Quentin Wodon, 2005. "Water, Electricity, and the Poor : Who Benefits from Utility Subsidies?," World Bank Publications, The World Bank, number 6361, June.
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    Cited by:

    1. 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.
    2. Chen, Yongmin & Gayle, Philip, 2013. "Mergers and Product Quality: Evidence from the Airline Industry," MPRA Paper 51238, University Library of Munich, Germany.
    3. repec:eee:retrec:v:66:y:2017:i:c:p:12-25 is not listed on IDEAS

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