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Tourism and the environment

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Author Info

  • Beladi, Hamid
  • Chao, Chi-Chur
  • Hazari, Bharat R.
  • Laffargue, Jean-Pierre

Abstract

This paper examines the effects of pollution taxes on welfare and environment for a small open economy. In the presence of tourism, pollution taxes provide a double dividend of less pollution and improvements in the tourism terms of trade. The optimal pollution taxes are derived under exogenous and endogenous tourism, and they can be greater or less than the marginal damage of pollution perceived by the domestic residents. Numerical simulations show that the optimal tax rate is larger under exogenous tourism.

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Bibliographic Info

Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 31 (2009)
Issue (Month): 1 (January)
Pages: 39-49

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Handle: RePEc:eee:resene:v:31:y:2009:i:1:p:39-49

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Web page: http://www.elsevier.com/locate/inca/505569

Related research

Keywords: Endogenous tourism optimal pollution taxes;

References

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  1. Copeland,B.R. & Scott Taylor,M., 2003. "Trade, growth and the environment," Working papers 10, Wisconsin Madison - Social Systems.
  2. Copeland, Brian R, 1991. "Tourism, Welfare and De-industrialization in a Small Open Economy," Economica, London School of Economics and Political Science, vol. 58(232), pages 515-29, November.
  3. Jones, Ronald W., 1996. "International trade, real wages, and technical progress: The specific-factors model," International Review of Economics & Finance, Elsevier, vol. 5(2), pages 113-124.
  4. Batra, Raveendra N, 1973. "Nontraded Goods, Factor Market Distortions, and the Gains from Trade," American Economic Review, American Economic Association, vol. 63(4), pages 706-13, September.
  5. Yohe, Gary W., 1979. "The backward incidence of pollution control--some comparative statics in general equilibrium," Journal of Environmental Economics and Management, Elsevier, vol. 6(3), pages 187-198, September.
  6. Jones, Ronald W., 2003. "Joint outputs and real wage rates," International Review of Economics & Finance, Elsevier, vol. 12(4), pages 513-516.
  7. Dei, Fumio, 1985. "Voluntary export restraints and foreign investment," Journal of International Economics, Elsevier, vol. 19(3-4), pages 305-312, November.
  8. Yu, Eden S. H. & Ingene, Charles A., 1982. "The backward incidence of pollution control in a rigid-wage economy," Journal of Environmental Economics and Management, Elsevier, vol. 9(4), pages 304-310, December.
  9. Batra, Raveendra N, 1984. "Non-traded Goods and the Metzler-Paradox: A Comment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(3), pages 763-67, October.
  10. Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 1998. "Lectures on International Trade, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522470, January.
  11. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2000. "Can Cross-Border Pollution Reduce Pollution?," CESifo Working Paper Series 360, CESifo Group Munich.
  12. Schou, Poul, 2002. " When Environmental Policy Is Superfluous: Growth and Polluting Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 605-20, December.
  13. Antoci, Angelo & Galeotti, Marcello & Russu, Paolo, 2005. "Consumption of private goods as substitutes for environmental goods in an economic growth model," MPRA Paper 13664, University Library of Munich, Germany.
  14. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
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Cited by:
  1. Chao, Chi-Chur & Laffargue, Jean-Pierre & Sgro, Pasquale M., 2012. "Environmental control, wage inequality and national welfare in a tourism economy," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 201-207.

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