EXTERNAL COSTS OF AVIATION VALUATION SOCIAL INSTITUTIONAL BASIS(industry affected public (regulatory policy) of Total S Impact Area Totals S/ Total$$ capita ddressed by (objective) requlation Noise $26B 2100 $29B 6000 11% (quiet environs) Air Quality $11B $140 25B 30 22% (safe air) Climate Change-$100B $345 $00B $0 (stable climate) OTAL 37 54B % Regulatory framework currently accommodates -5% potential internalization of external costs Noise cost per capita greater than emissions aligns with public opinion and institutional attention Most vociferous opposition to noise, but air quality becoming >>PRELIMINARY ESTIMATES ONLY<< @2003 Waitz more of an issue(GA0 2000) ukachko. 2003EXTERNAL COSTS OF AVIATION VALUATION SOCIAL INSTITUTIONAL BASIS (industry + affected public) (regulatory policy) Impact Area (objective) Total $ $ / capita Total $ $ / capita % of Total $ addressed by regulation Noise $ 26B $ 2100 $ 2.9B $ 6000 11% (quiet environs) Air Quality $ 11B $ 140 $ 2.5B $ 30 22% (safe air) Climate Change ~$100B $ 345 $ 0.0B $ 0 0% (stable climate) TOTAL ~$137B $ 5.4B 5% • Regulatory framework currently accommodates ~ 5% potential internalization of external costs • Noise cost per capita greater than emissions aligns with public opinion and institutional attention – Most vociferous opposition to noise, but air quality becoming more of an issue (GAO 2000) >>PRELIMINARY ESTIMATES ONLY<< Lukachko, 2003 © 2003 Waitz 6