IDEAS home Printed from https://ideas.repec.org/a/eee/touman/v43y2014icp8-21.html
   My bibliography  Save this article

Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria

Author

Listed:
  • Damm, Andrea
  • Köberl, Judith
  • Prettenthaler, Franz

Abstract

The prospects of increasing temperatures, a growing frequency of snow scarce winter seasons and rising energy prices raise questions about the future profitability of snowmaking. Therefore, we carry out a cost–revenue analysis of snowmaking based on projected daily snowmaking hours and visitor numbers until 2050 for a case study site in Austria. The results show that ski area operators are at risk of facing a substantial increase in total energy costs due to expected rising electricity costs, although the total amount of snowmaking hours is projected to slightly decrease because of shrinking feasible time for snowmaking (considering current snowmaking infrastructure). In the long run ski visitor numbers are projected to decline due to decreasing overall snow depths. Overall, the profitability analysis of skiing operations reveals that price increases in ski lift tickets, slightly higher than observed in the recent past, will be inevitable in order to keep skiing operations profitable in future.

Suggested Citation

  • Damm, Andrea & Köberl, Judith & Prettenthaler, Franz, 2014. "Does artificial snow production pay under future climate conditions? – A case study for a vulnerable ski area in Austria," Tourism Management, Elsevier, vol. 43(C), pages 8-21.
    • Handle: RePEc:eee:touman:v:43:y:2014:i:c:p:8-21
    DOI: 10.1016/j.tourman.2014.01.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261517714000107
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.tourman.2014.01.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jamie Sanderson & Sardar M. N. Islam, 2007. "Climate Change and Economic Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59012-0, February.
    2. Falk, Martin, 2013. "A survival analysis of ski lift companies," Tourism Management, Elsevier, vol. 36(C), pages 377-390.
    3. Dawson, J. & Scott, D., 2013. "Managing for climate change in the alpine ski sector," Tourism Management, Elsevier, vol. 35(C), pages 244-254.
    4. Jarque, Carlos M. & Bera, Anil K., 1980. "Efficient tests for normality, homoscedasticity and serial independence of regression residuals," Economics Letters, Elsevier, vol. 6(3), pages 255-259.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rutty, Michelle & Scott, Daniel & Johnson, Peter & Pons, Marc & Steiger, Robert & Vilella, Marc, 2017. "Using ski industry response to climatic variability to assess climate change risk: An analogue study in Eastern Canada," Tourism Management, Elsevier, vol. 58(C), pages 196-204.
    2. Falk, Martin & Vanat, Laurent, 2016. "Gains from investments in snowmaking facilities," Ecological Economics, Elsevier, vol. 130(C), pages 339-349.
    3. Martin Falk & Eva Hagsten, 2019. "Climate zone crucial for efficiency of ski lift operators," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(6), pages 664-681, April.
    4. Marijana Pantić & Tamara Maričić & Milena Toković, 2025. "Ski Resort vs. Altitude and Latitude: Competitiveness from the Perspective of the Consumers," Sustainability, MDPI, vol. 17(2), pages 1-33, January.
    5. Ciprian Ioan Rujescu, 2022. "Optimal Period for Winter Mountain Tourism in Romania," Sustainability, MDPI, vol. 14(7), pages 1-12, March.
    6. Lannoo, Karel & Thomadakis, Apostolos, 2020. "Derivatives in Sustainable Finance," ECMI Papers 29791, Centre for European Policy Studies.
    7. Falk, Martin & Hagsten, Eva, 2016. "Importance of early snowfall for Swedish ski resorts: Evidence based on monthly data," Tourism Management, Elsevier, vol. 53(C), pages 61-73.
    8. Robert Steiger & Eva Posch & Gottfried Tappeiner & Janette Walde, 2020. "Effects of climate change on tourism demand considering individual seasonal preferences," Working Papers 2020-08, Faculty of Economics and Statistics, University of Innsbruck.
    9. Falk, Martin & Lin, Xiang, 2018. "Sensitivity of winter tourism to temperature increases over the last decades," Economic Modelling, Elsevier, vol. 71(C), pages 174-183.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Falk, Martin & Vanat, Laurent, 2016. "Gains from investments in snowmaking facilities," Ecological Economics, Elsevier, vol. 130(C), pages 339-349.
    2. Martin Falk, 2015. "Returns to investments in new ski lifts: the importance of weather conditions and elevation," ERSA conference papers ersa15p1379, European Regional Science Association.
    3. Aurélie Corne & Olga Goncalves & Nicolas Peypoch, 2020. "Evaluating the performance drivers of French ski resorts: A hierarchical approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 389-405, April.
    4. Mayer, Marius & Steiger, Robert, 2013. "Skitourismus in den Bayerischen Alpen: Entwicklung und Zukunftsperspektiven," Arbeitsberichte der ARL: Aufsätze, in: Job, Hubert & Mayer, Marius (ed.), Tourismus und Regionalentwicklung in Bayern, volume 9, pages 164-212, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    5. Martin Falk & Eva Hagsten, 2019. "Climate zone crucial for efficiency of ski lift operators," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(6), pages 664-681, April.
    6. Rutty, Michelle & Scott, Daniel & Johnson, Peter & Pons, Marc & Steiger, Robert & Vilella, Marc, 2017. "Using ski industry response to climatic variability to assess climate change risk: An analogue study in Eastern Canada," Tourism Management, Elsevier, vol. 58(C), pages 196-204.
    7. Parthum, Bryan & Christensen, Peter, 2022. "A market for snow: Modeling winter recreation patterns under current and future climate," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    8. Roberto Martínez-Espiñeira, 2007. "An Estimation of Residential Water Demand Using Co-Integration and Error Correction Techniques," Journal of Applied Economics, Taylor & Francis Journals, vol. 10(1), pages 161-184, May.
    9. Jinan Liu & Apostolos Serletis, 2023. "Volatility and dependence in energy markets," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(1), pages 15-37, March.
    10. Bierens, H.J. & Broersma, L., 1991. "The relation between unemployment and interest rate : some international evidence," Serie Research Memoranda 0112, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    11. Richard G. Newell & William A. Pizer & Daniel Raimi, 2014. "Carbon Markets: Past, Present, and Future," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 191-215, October.
    12. Gourieroux, C. & Laurent, J. P. & Scaillet, O., 2000. "Sensitivity analysis of Values at Risk," Journal of Empirical Finance, Elsevier, vol. 7(3-4), pages 225-245, November.
    13. Halldén, Filip & Hultberg, Anna & Ahmed, Ali & Uddin, Gazi Salah & Yahya, Muhammad & Troster, Victor, 2025. "The role of institutional quality on public renewable energy investments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 215(C).
    14. Juncal Cunado & David Gabauer & Rangan Gupta, 2024. "Realized volatility spillovers between energy and metal markets: a time-varying connectedness approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-17, December.
    15. Amendola, Alessandra & Niglio, Marcella & Vitale, Cosimo, 2006. "The moments of SETARMA models," Statistics & Probability Letters, Elsevier, vol. 76(6), pages 625-633, March.
    16. Elie Bouri & Georges Azzi, 2014. "On the Dynamic Transmission of Mean and Volatility across the Arab Stock Markets," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 13(3), pages 279-304, December.
    17. Raul Anibal Feliz & John H. Welch, 1992. "Cointegration and tests of a classical model of inflation in Argentina, Bolivia, Brazil, Mexico, And Peru," Working Papers 9210, Federal Reserve Bank of Dallas.
    18. van Vuuren, Detlef P. & Hoogwijk, Monique & Barker, Terry & Riahi, Keywan & Boeters, Stefan & Chateau, Jean & Scrieciu, Serban & van Vliet, Jasper & Masui, Toshihiko & Blok, Kornelis & Blomen, Eliane , 2009. "Comparison of top-down and bottom-up estimates of sectoral and regional greenhouse gas emission reduction potentials," Energy Policy, Elsevier, vol. 37(12), pages 5125-5139, December.
    19. Elie Bouri & Mahdi Ghaemi Asl & Sahar Darehshiri & David Gabauer, 2024. "Asymmetric connectedness between conventional and Islamic cryptocurrencies: Evidence from good and bad volatility spillovers," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-26, December.
    20. Alolo, Mutaka & Azevedo, Alcino & El Kalak, Izidin, 2020. "The effect of the feed-in-system policy on renewable energy investments: Evidence from the EU countries," Energy Economics, Elsevier, vol. 92(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:touman:v:43:y:2014:i:c:p:8-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/tourism-management .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.