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A Noise Tax The implementation of a noise tax would do many things effecting the problem. Firstly, it would make airline tickets more expensive, the airline companies would have to pass on the extra cost to the passengers. In turn the demand for the tickets would decrease (as shown in diagram 1.1). This leads to a decrease in the number of flights supplied by the airlines and the number of planes in the air. However, there is a down side from the reduction of passenger numbers. Tourists may no longer wish to travel to that particular city, as the cost of the ticket is too high. This leads to a drop in the number tourists and the money spent by them in the city. The government is faced with an “opportunity cost”.
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