Noise reduction for Schiphol; a welfare-economic approach

When intervening, governments should take care about the size of the intervention. In practice, this issue is generally neglected. This line of research sets the first step towards determining the optimal size of government intervention in the case of noise nuisance near airports, more specifically in the case of Amsterdam airport. We use hedonic pricing to establish the benefits of noise reduction. Furthermore, we develop a bottom-up cost function, based on alternative approach procedures, regional substitution of planes within existing fleets, early depreciation of noisy planes and reducing the number of flights. We then equate marginal costs and benefits to establish the optimal level of noise reduction, which appears to be slightly below 3 dB(A). Generally speaking, measures like alternative approach procedures, regional substitution of planes within existing fleets, early depreciation of noisy planes are welfare increasing. A minor reduction in the number of flights will also increase welfare, whereas a larger reduction has a negative effect on net welfare.

This publication is in Dutch.