The Impact of Tourism on Solid Waste Generation and Management Cost in Madeira Island for the Period 1996–2018

António Miguel Martins and Susana Cró
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António Miguel Martins: CEEAplA (Center of Applied Economic Studies of the Atlantic) and University of Madeira, 9020-105 Funchal, Portugal
Susana Cró: CEFAGE and University of Évora, 7004-516 Évora, Portugal

Sustainability, 2021, vol. 13, issue 9, 1-16

Abstract: The tourism sector in Madeira represents 26.6% of the regional GDP and 16.7% of employment in the region. However, the sector is a source of adverse environmental impacts. One of the environmental repercussions of tourism, regarded as an externality, is the generation of solid waste. This paper aims to estimate the impact of tourist activities on solid waste generation in Madeira for the period 1996–2018. We used a fully modified ordinary least squares (FMOLS) model, including annual tourism inflows data. The results show that tourist activities are responsible for 41.9% to 46.6% of solid waste generation per resident in Madeira. The empirical results also support the hypothesis that there is a non-linear effect of tourism on the generation of solid waste. The importance of internalising this negative externality caused by tourism with the implementation of appropriate economic instruments and policies is the main policy implication of the study.

Keywords: solid waste generation; externalities; tourism activity; FMOLS model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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