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Are eco†labels good for the local economy?

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Listed:
  • Bernini, Cristina
  • Cerqua, Augusto

Abstract

We evaluate whether the adoption of a well†known transition management instrument in the tourism industry can support simultaneously economic growth as well as sustainability. 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 programme on the local economies. 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 a single policy does not suffice for transiting towards a sustainable economy.

Suggested Citation

Handle: RePEc:eee:paresc:v:99:y:2020:i:3:p:645-661
DOI: 10.1111/pirs.12502
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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
  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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