Tourism and the environment

Bharat Hazari, Jean-Pierre Laffargue (), Chi-Chur Chao () and Hamid Beladi
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Jean-Pierre Laffargue: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Chi-Chur Chao: CUHK - The Chinese University of Hong Kong [Hong Kong]

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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.

Keywords: Endogenous tourism; Optimal pollution tax (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (8)

Published in Resource and Energy Economics, 2009, 31, pp.39-49

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Related works:
Journal Article: Tourism and the environment (2009)
Working Paper: Tourism and the environment (2009)
Working Paper: Tourism and the environment (2009)
Working Paper: Tourism and the Environment (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00645281

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