Valuing Aviation Noise with the Contingent Valuation Method Case of Suvarnabhumi Airport, Bangkok, Thailand

Aviation noise from Suvarnabhumi Airport, Bangkok, Thailand, has had a severe impact on the quality of life of people who live in the surrounding areas since the airport began operation in 2006. The airport authority offered to buy homes in the most severely affected areas or to provide funds to soundproof them, but the compensation program was aimed mainly at homeowners, not renters of apartments or dormitories. In previous studies in Thailand, the focus was on examining the noise depreciation of home values by hedonic price modeling. In this paper, the scope of previous research is broadened to include the noise impact on renters by using the contingent valuation method to examine their willingness to accept compensation (WTA) when the noise level increases. Estimation of WTA was based on a choice experiment in which subjects were asked to evaluate alternatives in hypothetical scenarios and to select their preferred alternative. Scenarios with various levels of flight frequency and amounts of compensation were systematically developed to study trade-off behavior between these attributes. Coefficient estimates of the multinomial logit model imply that the WTA for an increase of one flight movement ranges from 18.87 to 68.62 baht (US$0.63 to US$2.29) per month. The results of this study can be useful in informing the airport authority's noise compensation policy, which needs to be revised in the near future in light of plans for the airport's expansion.