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The great growth of civil aviation brings good prospects to airlines. At the same time, residents in the neighborhood of airports ask for quiet environ-ment because of their awaking environmental awareness. In the past, the studies about airport noise in our country paid more attention to monitoring and abate-ment techniques of airport noise. There were few studies exploring the problem of airport noise from economic aspect. Therefore this study reviews the methodsused to solve the problem of airport noise,explores the economic characteristicsof airport noise and establishes and evaluates improvement alternatives fromeconomic viewpoints. Noise pollutes quiet environments, but there is no price market for quiet-ness. Airlines do not pay for making noise because there is no price mechanism.It brings external cost to affect the resident. Economically , the governmentshould intervene the market by taxation, regulations or ownership of propertyrights to internalize the external cost.And it will help to achieve the optimallevel of pollution. The study first establishes several alternatives of improvements or compe-nsation under their own objectives of government authority, airlines and resi-dents and then applies multiple criteria evaluation method to evaluate them. Itcould be shown from the evaluation that the alternatives of improvement or air-crafts and airport relocation would be preferred under the objective of maximal social welfare , while the alternatives of alternatives of improvements ofaircrafts and airlines regulations would be preferred under the objectives of minimal implementation cost. Fianlly, the study proposes government can organize an ad hoc committee, which consists of representatives of central and local governments,residents inthe neighborhood of airports and operators of airlines,to deal with the problemof airport noise. This committee should be responsible for monitoring,mechanismof improvements and compensations, and establishing a trust fund used specially to solve the problem of airport noise.
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