The impact of the Australian carbon tax on the tourism industry

Sam Meng and Tien Pham
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Sam Meng: University of New England, Australia
Tien Pham: Griffith University, Australia

Tourism Economics, 2017, vol. 23, issue 3, 506-522

Abstract: Using an environmentally extended social accounting matrix as well as a computable general equilibrium model, this study gauges the economic and environmental impact of Australian carbon tax, with an emphasis on the tourism industry. The results of the simulation show that a carbon tax of US$23 per tonne is very effective in achieving emissions reduction but also causes a mild economic contraction. Although the nominal value of tourism expenditure registers an insignificantly positive growth as a consequence of the carbon tax, the real expenditure value shows a significant decline in both inbound and domestic tourism demand. The household compensation package stimulates domestic tourism considerably but discourages inbound tourism further by contributing to a significant appreciation of the Australian dollar.

Keywords: CGE modelling; tourism industry; carbon tax; Australian economy (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:23:y:2017:i:3:p:506-522

DOI: 10.5367/te.2015.0514

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