Skip to Main Content
July 25, 2013
Brattle Study Forecasting Social and Economic Effects of Aircraft Noise Tax Cited in Milano Finanza Article

A July 23, 2013 article published in the Italian newspaper Milano Finanza references a Brattle study to support the claim that a regional tax on aircraft noise (IRESA) would result in harmful long-term social and economic effects on the passengers, airline companies, and airports in that region.

The study was sponsored by Aeroporti di Roma (AdR). AdR lodged a complaint with the Italian antitrust and the European Commission, asking for a revision of the regional tax. This tax has recently switched from a proposed state tax to a regional tax, which is not proportionate to noise reduction costs. It has led to concern about loss of competitiveness with other airports both nationally and internationally.

The Brattle study forecasts that regions who implement that tax will suffer in three ways: fewer potential customers will chose air travel, leading to greater use of alternative modes of transportation, which have a greater social cost; “low cost” airline companies will be forced to transfer to another airport; and there will be a reduction in the number of airport passengers, resulting in higher tariffs for airports, which in turn results in another reduction of airline passengers.

The article “ADR chiama la Ue contro l’Iresa” discusses the study’s findings regarding the short- and longer-term expected social and economic costs the passengers, airline companies, and airports will face.

The Brattle study was authored by principal Francesco Lo Passo.