Land, Environmental Externalities and Tourism Development
In a two sectors dynamic model we analyze the process of tourism development based on the accumulation of capital (building of tourism facilities) and the reallocation of land from traditional activities to the tourism sector. The model incorporates the conflict between occupation of the territory by the tourism facilities, other productive activities and availability of cultural, natural and environmental assets that are valued by residents and visitors. We characterize the process of tourism development in two settings: the socially optimal solution and a situation where the costs of tourism expansion are external to the decision makers, where externalities on residents as well as intraindustry externalities are considered. Regarding the optimal solution, we show that it is optimal to limit tourism expansion before it reaches its maximum capacity even in a context where the economic attractiveness of tourism relative to other productive sectors rise continuously. However, in this context and when all the costs of tourism development are externalities the only limit to tourism quantitative expansion is its maximum capacity determined by the availability of land. Finally, we show that excessive environmental degradation from the future generations’ point of view is not a problem of discounting the future but rather a problem of externalities that affects negatively the current and future generations.
|Date of creation:||Feb 2004|
|Contact details of provider:|| Postal: Corso Magenta, 63 - 20123 Milan|
Web page: http://www.feem.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brunstad, R.J. & Gaasland, I. & Vardal, E., 1999.
"Agricultural Production and the Optimal Level of Landscape Preservation,"
Norway; Department of Economics, University of Bergen
205, Department of Economics, University of Bergen.
- Rolf Jens Brunstad & Ivar Gaasland & Erling Vårdal, 1999. "Agricultural Production and the Optimal Level of Landscape Preservation (," Land Economics, University of Wisconsin Press, vol. 75(4), pages 538-546.
- Crouch, Geoffrey I., 1996. "Demand elasticities in international marketing : A meta-analytical application to tourism," Journal of Business Research, Elsevier, vol. 36(2), pages 117-136, June.
- Rigoberto A. Lopez & Farhed A. Shah & Marilyn A. Altobello, 1994. "Amenity Benefits and the Optimal Allocation of Land," Land Economics, University of Wisconsin Press, vol. 70(1), pages 53-62.
- Pruckner, Gerald J, 1995. "Agricultural Landscape Cultivation in Austria: An Application of the CVM," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(2), pages 173-190.
- Drake, Lars, 1992. "The Non-market Value of the Swedish Agricultural Landscape," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(3), pages 351-364.
- Tisdell, C., 1987. "Tourism, The Environment and Profit," Economic Analysis and Policy, Elsevier, vol. 17(1), pages 13-30.
- A Fleischer & Y Tsur, 2000. "Measuring the recreational value of agricultural landscape," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 27(3), pages 385-398, September.
When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2004.22. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah)
If references are entirely missing, you can add them using this form.