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

Chao Chi-Chur, Pasquale Sgro () and Jean-Pierre Laffargue
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Chao Chi-Chur: CUHK - The Chinese University of Hong Kong [Hong Kong]

PSE-Ecole d'économie de Paris (Postprint) 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 (9)

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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