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.

PRESERVATION OF ENVIRONMENTAL QUALITY AND TOURIST INVESTMENTS

Edgar J Sanchez Carrera;
2008-01-01

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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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11576/2658003
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