How to assess the compensations for home relocation: the case of the Malpensa airport

Abstract

The development of the Malpensa airport into a Hub for the Central and South Europe has produced on one side relevant economic impacts, on the other one considerable environmental problems, due to the noise and atmospheric pollution, especially for the inhabitants who live within a distance of 400 meters from the airport.  In the face of this difficult situation, the Lombardy Region has endorsed an agreement for relocating and compensating households affected by the environmental negative externalities. In this context the paper introduces the appraisal procedure used for estimating compensations and discusses the results, mostly in terms of deviation from the expected values and effectiveness of the model.