Preservation of environmental quality and tourist investments

Authors

  • Juan Brida Free University of Bolzano, School of Economics and Management, Bolzano, Italy, e-mail: JuanGabriel.Brida@unibz.it
  • Edgar J. Sanchez Carrera Department of Economics, University of Siena, Italy, e-mail: sanchezcarre@unisi.it
  • Elvio Accinelli Universidad Autónoma de San Luis Potosi, San Luis Potosi, México, e-mail: elvio.accinelli@eco.uaslp.mx

Keywords:

Environmental investment, hotel chain, Hotelling competition, sustainable tourism

Abstract

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.

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Published

2008-03-01

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. Retrieved from https://ejtr.vumk.eu/index.php/about/article/view/6