The Shadow Price of Aircraft Noise Nuisance

This paper has a twofold objective. First, we develop a new method to assess the monetary value for individuals of external effects. The method makes use of an ordinal index of life satisfaction as scored by individual respondents who are subjected in varying intensity to the external effect. Our second objective is to assess, with this method, to what extent noise nuisance effects around Amsterdam Airport Schiphol are internalized and what should be the monetary compensation for the nuisance. Such a compensation scheme depends on, among other things, the objective noise level, income and the presence of noise insulation.<BR><BR>