EconPapers    
Economics at your fingertips  
 

Do pollution havens restrict tourism-led growth? Achieving sustainable tourism via a mix of environmental and tourism policies

Yoshihiro Hamaguchi ()

Tourism Economics, 2020, vol. 26, issue 7, 1175-1196

Abstract: Using an R&D-based growth model with endogenous location choices and movement of tourists, we investigate the effect that a grandfathered emission permit and an airfare including alien tax have on international tourism. We find that improved environmental quality, achieved by the restricted allocation of grandfathered permits, leads to tourism-led growth. That is, both the number of tourists and the tourism growth rate increase. By contrast, we find that worsened environmental quality, caused by generous allocation of grandfathered permits and reduced airfares including alien tax, leads to the creation of pollution havens because the policy prompts polluting firms to relocate to the area with the respective regulations. Our findings imply sustainable tourism can be achieved when the respective environmental and tourism policies are implemented.

Keywords: agglomeration; emissions trading market; innovation; tourism-led growth hypothesis; sustainable tourism (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1354816619868086 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:26:y:2020:i:7:p:1175-1196

DOI: 10.1177/1354816619868086

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2021-09-14
Handle: RePEc:sae:toueco:v:26:y:2020:i:7:p:1175-1196