Coping with Externalities in Tourism: A Dynamic Optimal Taxation Approach

Schubert, Stefan Franz

doi:10.5367/000000010791305626

Cited by 30 publications

(20 citation statements)

References 27 publications

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“…Despite the potential economic benefits of tourism, a number ofstudies have notednegative externalities of tourism development, such asenvironmental degradation because of overexploitation of natural resources (Capó et al, 2007;Schubert, 2010), economic impoverishment of the resident population (Chao et al, 2006;Nowak et al, 2003), Dutch disease effects 1 (Capó et al, 2007;Holzner, 2005), loss of cultural and social values of the host community (Cooper et al, 1993), and the highly volatile nature of tourism receipts (Ghalia and Fidrmuc, 2016). 2 In a similar vein, and observed that tourism activity negatively affected Chinese economic growth, principally because of weak institutions, price volatility and the crowding out of human capital.…”

Section: Literature Reviewmentioning

confidence: 99%

Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach

et al. 2017

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This paper examines the empirical validity of the tourism-led growth hypothesis in the toptentourist destinations in the world(China, France, Germany, Italy, Mexico, Russia, Spain, Turkey, the United Kingdom, and the United States)using the quantile-on-quantile (QQ) approach and a new index of tourism activity that combines the most commonly used tourism indicators. This methodology, recently introduced by Sim and Zhou (2015), provides an ideal framework with which to capture the overall dependence structure between tourism development and economic growth. The empirical results primarily show a positive relation between tourism and economic growth for the ten countries considered with substantial variations across countries and across quantiles within each country. The weakest links arenoted for China and Germany,possibly because of the limitedimportance of the tourism sector relative to other major economic activities in those countries. Important country-specific policy implications may be drawn from these findings.

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Section: Literature Reviewmentioning

confidence: 99%

Tourism-led growth hypothesis in the top ten tourist destinations: New evidence using the quantile-on-quantile approach

et al. 2017

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“…5. Alternative models often used to investigate the relationship between tourism and growth are based upon dynamic models of trade (Hazari and Sgro, 1995;Schubert et al, 2011) or traditional growth-type models (Hernandez-Leon, 2013;Schubert, 2010). 6.…”

Section: Fundingmentioning

confidence: 99%

On the carrying capacity and the optimal number of visitors in tourism destinations

Marsiglio

2015

Tourism Economics

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Tourism specialization on the one hand may be a successful tool to achieve fast economic growth, and, on the other hand, may be detrimental for natural resources. Finding the right balance between economic benefits and environmental costs is essential to reach sustainable development, ensuring that tourist numbers do not exceed the carrying capacity of the tourism destination. In this context, the author analyses the determination of the optimal number of visitors in a tourism-based economy and shows that if the tourist number is optimally determined long-run sustainable growth will be possible. He also shows that the optimal number of tourists is strictly smaller than the carrying capacity of the tourism destination, and that such a condition is vital to achieve long-run growth.

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“…Based on this principle, price-based instruments are advocated to internalise adverse environmental impacts, lower tourism capacity, and increase longterm societal welfare. For instance, Lozano, Gómez, and Rey-Maquieira (2008), Piga (2003), andSchubert (2010) propose theoretical models based on partial or general equilibrium frameworks to support overnight-stay tax, tourism tax in general (payable by tourists), and land-use tax, respectively.…”

Section: Environmental Policy and Governancementioning

confidence: 99%