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Dynamics in a environmental model with tourism taxation

Author

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  • Russu, Paolo

Abstract

The purpose of this work is to analyze the dynamics of a model describing the interaction between tourists (T) and environmental resource (E) in the presence or absence of a tourist tax , used to protect the environmental resource. The model highlights how the introduction of tourist tax complicates the dynamics of the system, thus giving origin a new internal equilibrium that is a saddle point, which the stable manifold separates the basin attraction of the locally attractive internal positive point from the one equilibrium point (K; 0), which is also locally stable. Moreover, starting from a system with beta= 0, which has an unstable internal equilibrium, a suitable combination of tourist tax and defensive expenditures leads to a stabilization the protect system.

Suggested Citation

  • Russu, Paolo, 2012. "Dynamics in a environmental model with tourism taxation," MPRA Paper 37213, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:37213
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    File URL: https://mpra.ub.uni-muenchen.de/37213/1/MPRA_paper_37213.pdf
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    References listed on IDEAS

    as
    1. Carl Bonham & Byron Gangnes, 1995. "Intervention Analysis with Cointegrated Time Series: The Case of the Hawaii Hotel Room Tax," Working Papers 199505, University of Hawaii at Manoa, Department of Economics.
    2. Warnken, Jan & Bradley, Melanie & Guilding, Chris, 2004. "Exploring methods and practicalities of conducting sector-wide energy consumption accounting in the tourist accommodation industry," Ecological Economics, Elsevier, vol. 48(1), pages 125-141, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Words–tourism economics; tourism taxation; Hopf bifurcation; environmental quality; economic modelling;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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