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Do pollution havens restrict tourism-led growth? Achieving sustainable tourism via a mix of environmental and tourism policies

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  • Yoshihiro Hamaguchi

    (88411Osaka Seikei University, Japan)

Abstract

Using an R&D-based growth model with endogenous location choices and movement of tourists, we investigate the effect that a grandfathered emission permit and an airfare including alien tax have on international tourism. We find that improved environmental quality, achieved by the restricted allocation of grandfathered permits, leads to tourism-led growth. That is, both the number of tourists and the tourism growth rate increase. By contrast, we find that worsened environmental quality, caused by generous allocation of grandfathered permits and reduced airfares including alien tax, leads to the creation of pollution havens because the policy prompts polluting firms to relocate to the area with the respective regulations. Our findings imply sustainable tourism can be achieved when the respective environmental and tourism policies are implemented.

Suggested Citation

  • Yoshihiro Hamaguchi, 2020. "Do pollution havens restrict tourism-led growth? Achieving sustainable tourism via a mix of environmental and tourism policies," Tourism Economics, , vol. 26(7), pages 1175-1196, November.
    • Handle: RePEc:sae:toueco:v:26:y:2020:i:7:p:1175-1196
    DOI: 10.1177/1354816619868086
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    1. Hamaguchi, Yoshihiro, 2020. "Dynamic analysis of bribery firms’ environmental tax evasion in an emissions trading market," Journal of Macroeconomics, Elsevier, vol. 63(C).
    2. Hamaguchi, Yoshihiro, 2021. "Does the trade of aviation emission permits lead to tourism-led growth and sustainable tourism?," Transport Policy, Elsevier, vol. 105(C), pages 181-192.
    3. Chu, Angus C. & Liao, Chih-Hsing & Xu, Rongxin & Chen, Ping-Ho, 2024. "Dynamic effects of tourism shocks on innovation in an open-economy Schumpeterian growth model," Economic Modelling, Elsevier, vol. 131(C).
    4. Bernardo Valente & Eduardo Medeiros, 2022. "The Impacts of EU Cohesion Policy on Sustainable Tourism: The Case of POSEUR in Algarve," Sustainability, MDPI, vol. 14(19), pages 1-15, October.
    5. Hamaguchi, Yoshihiro, 2023. "Environmental tax evasion as a determinant of the Porter and pollution haven hypotheses in a corrupt political system," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 610-633.
    6. Prakoso Havidz Ageng & Syahputri Gusti C. A. & Syaprin Zahidi M. & Roziqin Ali, 2023. "Research trajectory on tourism policy: a bibliometric overview," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(1), pages 56-66, December.

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