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Tourism and the Environment

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Author Info
Hamid Beladi (University of Texas at San Antonio)
Chi-Chur Chao (Chinese University of Hong Kong)
Bharat R. Hazari (City University of Hong Kong Kowloon)

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Abstract

This paer examines the effects of exogenous and endogenous tourism on welfare and the environment. Despite a gain from the terns-of-trade improvement, and exogenous tourism boom can harm the environment and hence lower welfare of domestic residents. To limit deteriorating the environment, a pollution tax is imposed. In the presence of endogenous tourism, the optimal pollution tax may exceed the marginal damage of pollution. The higher pollution tax can actually attract more tourists and hence improve domestic residents' welfare.

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File URL: http://business.utsa.edu/wps/eco/0001ECO-414-2007.pdf
File Format: application/pdf
File Function: Full text
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Publisher Info
Paper provided by College of Business, University of Texas at San Antonio in its series Working Papers with number 0001.

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Length: 13 pages
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Handle: RePEc:tsa:wpaper:0001

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Related research
Keywords: Endogenous tourism; the Environment;

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Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

References listed on IDEAS
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  1. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Can cross-border pollution reduce pollution?," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 805-818, November. [Downloadable!] (restricted)
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  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
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