'Noise wars': The EU's 'Hushkit Regulation' : Environmental Protection or 'Eco'-protectionism?

Abstract

On May 4, 2000, the EU enacted the so-called 'hushkit regulation' with the stated aim of reducing aircraft noise levels by significantly curbing the use of hushkitted (i.e. muffled) or re-engined older-generation jet aeroplanes at Community airports. The USA, however, home of both the entire hushkit industry and the vast majority of the operators and owners of the potentially affected aircraft, immediately demanded the regulation's repeal, denouncing its purely protectionist intent and effects and threatening the EU with retaliatory action. After a lengthy political and legal controversy the EU, in October 2001, gave in and withdrew the legislation. In this paper we evaluate the late 'hush-kit regulation' from three different perspectives - environmental policy, trade policy and rent-seeking potential - to determine its respective merits and demerits.