An “effluent” charge approach to aircraft noise abatement

Abstract

This paper is concerned with the control of aircraft noise. Some brief remarks are made on the relationship of aircraft noise problems to the theoretical approaches to externalities. We note in particular that an effluent charge is the most practical way to deal with the problem. A linear programming technique is used to find the bundle of noise-reducing options that minimizes the cost of achieving noise reduction goals, given an upper limit on service reduction. A rate-of-return criterion is imposed on the l.p. solution. Shadow prices are used to generate charges on the airlines. This provides a stimulus for abatement without dictating actual methods. Implicit in the cost parameters are prices of aircraft fuel. We assess the attractiveness of the abatement options with increasing fuel prices. The mechanics of the actual implementation of the charge in the airline industry is examined. We conclude that the institution of a plan such as the one proposed here will provide control of aircraft noise in a socially efficient manner.