This chapter examines the monetary compensation needed to neutralize aircraft noise for households living around the Amsterdam airport. Two cases are considered. In the first case, houses with a noisy environment are cheaper than houses in a quiet environment, while there is no price adaptation in the second case. It is shown that Amsterdam housing costs do not depend on the noise, meaning the housing prices and rents do not appear to internalise the external effect completely.
Keywords: noise nuisance, monetary compensation, aircraft noise, Amsterdam airport, external effects,