Preservation of environmental quality and tourist investments


  • Juan Brida Free University of Bolzano, School of Economics and Management, Bolzano, Italy, e-mail:
  • Edgar J. Sanchez Carrera Department of Economics, University of Siena, Italy, e-mail:
  • Elvio Accinelli Universidad Autónoma de San Luis Potosi, San Luis Potosi, México, e-mail:



Environmental investment, hotel chain, Hotelling competition, sustainable tourism


We develop a theoretical model to analyze the incentives for hotel chains to make environmentally friendly investments. We show that the level of investment of hotel chains to improve the environmental quality of a tourist destination depends positively on two factors: tourist demand and the level of aggregate income. The framework is based on a model of horizontal differentiation à la Hotelling. By introducing a demand function for tourist commodities, we show that an increase in total income encourages hotel chains in the regions with higher demand to invest on environmental quality.




How to Cite

Brida, J. ., Carrera, E., & Accinelli, E. (2008). Preservation of environmental quality and tourist investments. European Journal of Tourism Research, 1(1), 4–15.