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Do sustainability policies finance local economies?

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  • Bernini, Cristina
  • Cerqua, Augusto

Abstract

We evaluate whether adopting a well-known transition management instrument in the tourism industry can support a combined goal of sustainability and economic growth. We create a detailed dataset at the municipality level and use a recently developed policy evaluation technique to investigate the causal impact of the Blue Flag program on the local economies of coastal destinations. Estimates show that this eco-label is not effective at enhancing the local economy; findings are homogeneous across destinations. This empirical result is in line with the recent theoretical literature arguing that the transition towards growing a sustainable economy is particularly complex and a single policy does not suffice.

Suggested Citation

  • Bernini, Cristina & Cerqua, Augusto, 2019. "Do sustainability policies finance local economies?," MPRA Paper 91882, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91882
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    References listed on IDEAS

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    Cited by:

    1. Amelia Bilbao-Terol & Celia Bilbao-Terol, 2020. "Measuring the Economic Impact of a Voluntary Sustainable Tourism Certification," Sustainability, MDPI, vol. 12(13), pages 1-18, July.

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    More about this item

    Keywords

    sustainability policy; eco-label; transition management; policy evaluation method;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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