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Tourism and the environment

Author Info

Listed author(s):
  • 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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File URL: http://www.sciencedirect.com/science/article/pii/S0928-7655(08)00032-8
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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
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505569

Keywords: Endogenous tourism optimal pollution taxes;

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  1. 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 515-529, November.
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  9. 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, July.
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  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. 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.
  15. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
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Cited by:

  1. Chen, Ping-ho & Lai, Ching-chong & Chu, Hsun, 2016. "Welfare effects of tourism-driven Dutch disease: The roles of international borrowings and factor intensity," International Review of Economics & Finance, Elsevier, vol. 44(C), pages 381-394.
  2. Asma BEN OTHMEN, 2014. "De la mise à contribution des bénéficiaires au financement de la préservation des espaces naturels : tarification de l’accès ou augmentation de taxe?," Cahiers du GREThA 2014-10, Groupe de Recherche en Economie Théorique et Appliquée.
  3. 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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