Environmental Control, Wage Inequality and National Welfare for a Tourism Economy

Chi-Chur Chao, Pasquale Sgro () and Jean-Pierre Laffargue ()
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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

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper examines the effects of stricter environmental regulation on income distribution and welfare for an open economy with inbound tourism. The pollution input is considered as a mobile factor between sectors, and a decrease in it lowers wages of skilled labor in the traded sector but can increase the wages of unskilled labor in the non-traded sector. A stricter policy on environmental controls can narrow wage inequality and increase welfare if the tourism terms-of-trade effect dominates. These results are confirmed by simulations.

Keywords: environmental control; Wage inequality; Welfare; Tourism (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (11)

Published in International Review of Economics and Finance, 2012, 22, pp.201-207

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Related works:
Working Paper: Environmental Control, Wage Inequality and National Welfare for a Tourism Economy (2012)
Working Paper: Environmental Control, Wage Inequality and National Welfare for a Tourism Economy (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00644023

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