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Tourism and the environment

Author

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  • 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.

Suggested Citation

  • Beladi, Hamid & Chao, Chi-Chur & Hazari, Bharat R. & Laffargue, Jean-Pierre, 2009. "Tourism and the environment," Resource and Energy Economics, Elsevier, vol. 31(1), pages 39-49, January.
    • Handle: RePEc:eee:resene:v:31:y:2009:i:1:p:39-49
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    Cited by:

    1. 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.
    2. 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.
    3. repec:eee:touman:v:46:y:2015:i:c:p:11-19 is not listed on IDEAS
    4. 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.
    5. repec:bla:reviec:v:25:y:2017:i:3:p:607-625 is not listed on IDEAS

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