Transaction costs of ineffective legal intervention restricting land ownership in the vicinity of airports: the example of the Polish compensation scheme in the context of environmental regulations


legal intervention
transaction costs
aircraft noise

How to Cite

Forys, Iwona, Michał Głuszak, Magdalena Habdas, and Jan Konowalczuk. 2024. “Transaction Costs of Ineffective Legal Intervention Restricting Land Ownership in the Vicinity of Airports: The Example of the Polish Compensation Scheme in the Context of Environmental Regulations”. Economics and Environment 88 (1): 626.


The goal of the paper is to assess the social implications of an ineffective legal intervention, which consists of introducing ownership restrictions concerning residential real estate located in the vicinity of airports. The paper evaluates Polish law in the context of the legislator's environmental aims and compares current regulations in Poland with solutions adopted in English law and American jurisdictions. The social and economic impact of ineffective legal intervention is calculated for the KTW airport case study with the use of information about the structure and value of filed and awarded claims for damages. With the use of this data, in the empirical part of the paper, we evaluate the factual transaction costs of public intervention for that airport, as well as ones which would occur if, instead of the Polish model, the American and the English models of compensation were applied. This allows us to explain the socio-economic consequences of adopting a given solution as well as to assess whether it fulfils desirable objectives. It also provides an opportunity to assess the models in the context of devising legally and economically justified compensation for landowners near airports affected by aircraft noise. The paper narrows the gap in the legal and economic knowledge related to the types and implications of ownership restrictions introduced in the vicinity of airports.



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