A review copy of this case is available free of charge to educators and trainers. Please
create an account
or sign in
to gain access to this material.
Permission to Reprint
Each purchase of this product entitles the buyer to one digital file and use.
If you intend to distribute, teach, or share this item, you must purchase
permission for each individual who will be given access.
Learn more about
purchasing permission to reprint.
Abstract: Government agencies have responded to complaints about airport noise in rather traditional ways, primarily by mandating noise standards for jet aircraft. This case describes the problem of airport noise as of 1980, delineates the ways airplanes and airport operators can reduce noise damage, describes the existing retrofit requirement, and presents three alternative noise charge schemes.
Learning Objective: The case gives students an opportunity to apply abstract economic concepts to a real-world problem of externalities and, more specifically, provides a vehicle for stimulating discussion about the merits of standards versus incentive-based charge schemes.