IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v26y2020i7p1175-1196.html
   My bibliography  Save this article

Do pollution havens restrict tourism-led growth? Achieving sustainable tourism via a mix of environmental and tourism policies

Author

Listed:
  • Yoshihiro Hamaguchi

    (88411Osaka Seikei University, Japan)

Abstract

Using an R&D-based growth model with endogenous location choices and movement of tourists, we investigate the effect that a grandfathered emission permit and an airfare including alien tax have on international tourism. We find that improved environmental quality, achieved by the restricted allocation of grandfathered permits, leads to tourism-led growth. That is, both the number of tourists and the tourism growth rate increase. By contrast, we find that worsened environmental quality, caused by generous allocation of grandfathered permits and reduced airfares including alien tax, leads to the creation of pollution havens because the policy prompts polluting firms to relocate to the area with the respective regulations. Our findings imply sustainable tourism can be achieved when the respective environmental and tourism policies are implemented.

Suggested Citation

  • Yoshihiro Hamaguchi, 2020. "Do pollution havens restrict tourism-led growth? Achieving sustainable tourism via a mix of environmental and tourism policies," Tourism Economics, , vol. 26(7), pages 1175-1196, November.
    • Handle: RePEc:sae:toueco:v:26:y:2020:i:7:p:1175-1196
    DOI: 10.1177/1354816619868086
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1354816619868086
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1354816619868086?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. Hjalager, Anne-Mette, 2010. "A review of innovation research in tourism," Tourism Management, Elsevier, vol. 31(1), pages 1-12.
    2. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    3. Philippe Martin & Gianmarco I.P. Ottaviano, 2021. "Growing locations: Industry location in a model of endogenous growth," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 1, pages 3-24, World Scientific Publishing Co. Pte. Ltd..
    4. Yoshihiro Hamaguchi, 2019. "Positive Effect of Pollution Permits in a Variety Expansion Model with Social Status Preference," Manchester School, University of Manchester, vol. 87(4), pages 591-606, July.
    5. Richard S.J. Tol, 2006. "The Impact of a Carbon Tax on International Tourism," Papers WP177, Economic and Social Research Institute (ESRI).
    6. Simone Marsiglio, 2015. "Economic Growth and Environment: Tourism as a Trigger for Green Growth," Tourism Economics, , vol. 21(1), pages 183-204, February.
    7. Basseti, Thomas & Benos, Nikos & Karagiannis, Stelios, 2010. "How policy can influence human capital accumulation and environment quality," MPRA Paper 21754, University Library of Munich, Germany.
    8. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
    9. Zeng, Dao-Zhi & Zhao, Laixun, 2009. "Pollution havens and industrial agglomeration," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 141-153, September.
    10. Robin Smale & Murray Hartley & Cameron Hepburn & John Ward & Michael Grubb, 2006. "The impact of CO 2 emissions trading on firm profits and market prices," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 31-48, January.
    11. Carlos Gómez & Javier Lozano & Javier Rey-Maquieira, 2008. "Environmental policy and long-term welfare in a tourism economy," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(1), pages 41-62, March.
    12. Oueslati, Walid, 2002. "Environmental policy in an endogenous growth model with human capital and endogenous labor supply," Economic Modelling, Elsevier, vol. 19(3), pages 487-507, May.
    13. Nicola Commins & Seán Lyons & Marc Schiffbauer & Richard S.J. Tol, 2011. "Climate Policy & Corporate Behavior," The Energy Journal, , vol. 32(4), pages 51-68, October.
    14. Rikard Forslid & Toshihiro Okubo & Mark Sanctuary, 2017. "Trade Liberalization, Transboundary Pollution, and Market Size," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(3), pages 927-957.
    15. Antoci, Angelo & Sodini, Mauro, 2009. "Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities," Chaos, Solitons & Fractals, Elsevier, vol. 42(3), pages 1439-1450.
    16. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    17. Fabio Cerina, 2007. "Tourism Specialization and Environmental Sustainability in a Dynamic Economy," Tourism Economics, , vol. 13(4), pages 553-582, December.
    18. Mohtadi, Hamid, 1996. "Environment, growth, and optimal policy design," Journal of Public Economics, Elsevier, vol. 63(1), pages 119-140, December.
    19. Raymond Gradus & Sjak Smulders, 1993. "The trade-off between environmental care and long-term growth—Pollution in three prototype growth models," Journal of Economics, Springer, vol. 58(1), pages 25-51, February.
    20. Cameron Hepburn, 2006. "Regulation by Prices, Quantities, or Both: A Review of Instrument Choice," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(2), pages 226-247, Summer.
    21. Lange Andreas & Quaas Martin F, 2007. "Economic Geography and the Effect of Environmental Pollution on Agglomeration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-33, October.
    22. Wei-Bin Zhang, 2017. "Spatial Agglomeration And Economic Development With The Inclusion Of Interregional Tourism," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 93-128, April - J.
    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. Hamaguchi, Yoshihiro, 2020. "Dynamic analysis of bribery firms’ environmental tax evasion in an emissions trading market," Journal of Macroeconomics, Elsevier, vol. 63(C).
    2. Hamaguchi, Yoshihiro, 2023. "Environmental tax evasion as a determinant of the Porter and pollution haven hypotheses in a corrupt political system," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 610-633.
    3. Prakoso Havidz Ageng & Syahputri Gusti C. A. & Roziqin Ali & Syaprin Zahidi M., 2023. "Research trajectory on tourism policy: a bibliometric overview," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 13(1), pages 56-66, December.
    4. Chu, Angus C. & Liao, Chih-Hsing & Xu, Rongxin & Chen, Ping-Ho, 2024. "Dynamic effects of tourism shocks on innovation in an open-economy Schumpeterian growth model," Economic Modelling, Elsevier, vol. 131(C).
    5. Hamaguchi, Yoshihiro, 2021. "Does the trade of aviation emission permits lead to tourism-led growth and sustainable tourism?," Transport Policy, Elsevier, vol. 105(C), pages 181-192.
    6. Yoshihiro Hamaguchi, 2024. "Whether to Abolish or Introduce Dual Regulation as Trade and Environmental Policy?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(1), pages 57-95, January.
    7. Bernardo Valente & Eduardo Medeiros, 2022. "The Impacts of EU Cohesion Policy on Sustainable Tourism: The Case of POSEUR in Algarve," Sustainability, MDPI, vol. 14(19), pages 1-15, October.

    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. Hamaguchi, Yoshihiro, 2021. "Does the trade of aviation emission permits lead to tourism-led growth and sustainable tourism?," Transport Policy, Elsevier, vol. 105(C), pages 181-192.
    2. Yoshihiro Hamaguchi, 2022. "Effect of environmental tax evasion on pollution havens within the EU’s dual regulation system," SN Business & Economics, Springer, vol. 2(12), pages 1-25, December.
    3. Caballero, María Victoria & Martínez-García, María Pilar & Morales, José R., 2024. "Pollution-induced migration and environmental policy in an economic geography model," Resource and Energy Economics, Elsevier, vol. 76(C).
    4. Colin Davis, 2013. "Regional integration and innovation offshoring with occupational choice and endogenous growth," Journal of Economics, Springer, vol. 108(1), pages 59-79, January.
    5. Fabien Candau, 2008. "Entrepreneurs' Location Choice And Public Policies: A Survey Of The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 909-952, December.
    6. Colin Davis & Ken-Ichi Hashimoto, 2015. "Industry Concentration, Knowledge Diffusion and Economic Growth Without Scale Effects," Economica, London School of Economics and Political Science, vol. 82(328), pages 769-789, October.
    7. Colin Davis & Ken‐ichi Hashimoto, 2021. "Import competition and industry location in a small‐country model of productivity growth," Review of International Economics, Wiley Blackwell, vol. 29(4), pages 1046-1064, September.
    8. Chen Jhy-hwa & Shieh Jhy-yuan & Chang Juin-jen, 2015. "Environmental policy and economic growth: the macroeconomic implications of the health effect," The B.E. Journal of Macroeconomics, De Gruyter, vol. 15(1), pages 223-253, January.
    9. Colin Davis & Ken-ichi Hashimoto, 2023. "R&D Subsidies, Innovation Location, and Productivity Growth," ISER Discussion Paper 1226, Institute of Social and Economic Research, Osaka University.
    10. Haitao Cheng, 2023. "Consumption pollution and taxes with endogenous firm locations and different market sizes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(6), pages 1601-1632, December.
    11. Hamaguchi, Yoshihiro, 2020. "Dynamic analysis of bribery firms’ environmental tax evasion in an emissions trading market," Journal of Macroeconomics, Elsevier, vol. 63(C).
    12. Hajime Takatsuka, 2020. "Uniform emission taxes, abatement, and spatial disparities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1133-1166, October.
    13. Haufler, Andreas & Pflüger, Michael, 2003. "Market structure and the taxation of international trade," Discussion Papers in Economics 106, University of Munich, Department of Economics.
    14. Cheng, Haitao, 2021. "Trade, Consumption Pollution and Tax," Discussion paper series HIAS-E-106, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    15. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
    16. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE.
    17. Toru Kikuchi, 2008. "Distribution Costs, International Trade and Industrial Location," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-5.
    18. Boiscuvier, Éléonore, 2001. "Innovation, intégration et développement régional," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(2), pages 255-280, juin.
    19. Colin Davis & Ken-ichi Hashimoto, 2019. "Innovation Offshoring with Fully Endogenous Growth," ISER Discussion Paper 1055, Institute of Social and Economic Research, Osaka University.
    20. Cheng, Haitao, 2024. "Domestic versus international emissions trading with capital mobility," Resource and Energy Economics, Elsevier, vol. 77(C).

    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:sae:toueco:v:26:y:2020:i:7:p:1175-1196. 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: SAGE Publications (email available below). General contact details of provider: .

    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.