Volcanic eruptions and tourism prosocial consumption

Ubay Pérez-Granja, Ascensión Andina-Díaz and Juan Luis Jiménez
Authors registered in the RePEc Author Service: Juan Luis Jiménez

Tourism Economics, 2024, vol. 30, issue 8, 1973-2001

Abstract: This paper exploits a recent natural experiment to analyze the effect of volcanic eruptions on tourism expenditure. Using a Difference-in-Differences methodology, we find that volcanic eruptions have a positive impact on tourism expenditure, both aggregate expenditure and expenditure by category, and both during the eruption and the post-eruption period. We investigate the mechanisms behind the increase in expenditure and obtain strong support for the empathy mechanism, prevailing over other mechanisms such as changes in prices, the profile of tourists, or simply curiosity. Our results suggest that tourist empathy with the affected community manifests through consumption, finding that prosocial consumption increases in the cultural identification of the tourist with the affected area.

Keywords: empathy; natural disasters; prosocial consumption; tourism expenditure; volcanic eruption; D12; D91; L83; Z3 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:30:y:2024:i:8:p:1973-2001

DOI: 10.1177/13548166241244844

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