IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i21p8762-d432804.html
   My bibliography  Save this article

Satisfied or Reimbursed: An Innovative Index-Based Mechanism for the Environmental Protection of a Tourist Region

Author

Listed:
  • Simone Borghesi

    (Department of International and Political Sciences, University of Siena, 53100 Siena SI, Italy
    Florence School of Regulation—Climate, European University Institute, 50133 Florence FI, Italy)

Abstract

This article describes and discusses an innovative index-based environmental protection mechanism involving both tourists and local firms of a given region. The public administration offers tourists (non-polluting firms) the possibility of being reimbursed if the environmental quality in the region turns out to be below (above) a given threshold level. Since the two kinds of reimbursements (to visitors and firms) are linked to the same ecological indicator, they will tend to compensate each other, so that the mechanism could be implemented without incurring any cost for the public administration. The article identifies potential difficulties that may arise in its application and proposes corresponding solutions to address them.

Suggested Citation

  • Simone Borghesi, 2020. "Satisfied or Reimbursed: An Innovative Index-Based Mechanism for the Environmental Protection of a Tourist Region," Sustainability, MDPI, vol. 12(21), pages 1-8, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8762-:d:432804
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/21/8762/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/21/8762/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Antoci, Angelo & Borghesi, Simone & Russu, Paolo, 2012. "Environmental protection mechanisms and technological dynamics," Economic Modelling, Elsevier, vol. 29(3), pages 840-847.
    2. Ferreira, Doneivan & Suslick, Saul & Farley, Joshua & Costanza, Robert & Krivov, Sergey, 2004. "A decision model for financial assurance instruments in the upstream petroleum sector," Energy Policy, Elsevier, vol. 32(10), pages 1173-1184, July.
    3. Patterson, Trista M. & Niccolucci, Valentina & Bastianoni, Simone, 2007. "Beyond "more is better": Ecological footprint accounting for tourism and consumption in Val di Merse, Italy," Ecological Economics, Elsevier, vol. 62(3-4), pages 747-756, May.
    4. Angelo Antoci & Simone Borghesi & Marcello Galeotti, 2013. "Environmental options and technological innovation: an evolutionary game model," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 247-269, April.
    5. Costanza, Robert & Perrings, Charles, 1990. "A flexible assurance bonding system for improved environmental management," Ecological Economics, Elsevier, vol. 2(1), pages 57-75, April.
    6. Marc Chesney & Jonathan Gheyssens & Anca Claudia Pana & Luca Taschini, 2016. "Environmental Finance and Investments," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-662-48175-2, October.
    7. Santiago Moreno-Bromberg & Luca Taschini, 2011. "Pollution permits, Strategic Trading and Dynamic Technology Adoption," Papers 1103.2914, arXiv.org.
    8. Perrings, Charles, 1989. "Environmental bonds and environmental research in innovative activities," Ecological Economics, Elsevier, vol. 1(1), pages 95-110, February.
    9. Marc Chesney & Jonathan Gheyssens & Anca Claudia Pana & Luca Taschini, 2016. "The Finance of Environmental Investments," Springer Texts in Business and Economics, in: Environmental Finance and Investments, edition 2, chapter 6, pages 103-158, Springer.
    10. Perrings,Charles, 1987. "Economy and Environment," Cambridge Books, Cambridge University Press, number 9780521340816, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angelo Antoci & Marcello Galeotti & Davide Radi, 2011. "Financial Tools for the Abatement of Traffic Congestion: A Dynamical Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 38(3), pages 389-405, October.
    2. Angelo Antoci & Simone Borghesi & Marcello Galeotti, 2013. "Environmental options and technological innovation: an evolutionary game model," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 247-269, April.
    3. Antoci, Angelo & Borghesi, Simone & Russu, Paolo, 2012. "Environmental protection mechanisms and technological dynamics," Economic Modelling, Elsevier, vol. 29(3), pages 840-847.
    4. Sara Aghakazemjourabbaf & Margaret Insley, 2018. "Optimal timing of harzardous waste clean-up under an environmental bond an a strict liability rule," Working Papers 1803, University of Waterloo, Department of Economics, revised 06 Jan 2018.
    5. Angelo Antoci & Marcello Galeotti & Paolo Russu, 2009. "Over-exploitation of open-access natural resources and global indeterminacy in an economic growth model," Working Papers - Mathematical Economics 2009-05, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    6. Aghakazemjourabbaf, Sara & Insley, Margaret, 2021. "Leaving your tailings behind: Environmental bonds, bankruptcy and waste cleanup," Resource and Energy Economics, Elsevier, vol. 65(C).
    7. Brown, Marilyn A. & Li, Yufei & Soni, Anmol, 2020. "Are all jobs created equal? Regional employment impacts of a U.S. carbon tax," Applied Energy, Elsevier, vol. 262(C).
    8. van den Bergh, Jeroen C.J.M., 2010. "Externality or sustainability economics?," Ecological Economics, Elsevier, vol. 69(11), pages 2047-2052, September.
    9. Jeroen C.J.M. van den Bergh, 2014. "Sustainable development in ecological economics," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 3, pages 41-54, Edward Elgar Publishing.
    10. Templet, Paul H., 1995. "Grazing the commons: an empirical analysis of externalities, subsidies and sustainability," Ecological Economics, Elsevier, vol. 12(2), pages 141-159, February.
    11. Gerard, David, 2000. "The law and economics of reclamation bonds," Resources Policy, Elsevier, vol. 26(4), pages 189-197, December.
    12. Perrings, Charles, 2001. "The economics of biological invasions," Land Use and Water Resources Research, University of Newcastle upon Tyne, Centre for Land Use and Water Resources Research, vol. 1, pages 1-9.
    13. Hourcade, Jean-Charles & Salles, Jean-Michel & Thery, Daniel, 1992. "Ecological economics and scientific controversies. Lessons from some recent policy making in the EEC," Ecological Economics, Elsevier, vol. 6(3), pages 211-233, December.
    14. Igarashi, Yoshiyuki & Coupal, Roger & Finnoff, David & Andersen, Matthew A., 2014. "Economics of Oil and Gas Development in the Presence of Reclamation and Bonding Requirements," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170600, Agricultural and Applied Economics Association.
    15. Wegener, Christoph & Kruse-Becher, Robinson & Klein, Tony, 2024. "EU ETS Market Expectations and Rational Bubbles," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302359, Verein für Socialpolitik / German Economic Association.
    16. Xiaoyan Wang & Minggao Xue & Lu Xing, 2018. "Analysis of Carbon Emission Reduction in a Dual-Channel Supply Chain with Cap-And-Trade Regulation and Low-Carbon Preference," Sustainability, MDPI, vol. 10(3), pages 1-18, February.
    17. Magdalena Ziolo & Beata Zofia Filipiak & Iwona Bąk & Katarzyna Cheba & Diana Mihaela Tîrca & Isabel Novo-Corti, 2019. "Finance, Sustainability and Negative Externalities. An Overview of the European Context," Sustainability, MDPI, vol. 11(15), pages 1-35, August.
    18. Yang Liu & Ling Tang, 2024. "Environmental Penalties, Internal and External Governance, and Green Innovation: Does the Deterrence Effect Work?," Sustainability, MDPI, vol. 16(16), pages 1-17, August.
    19. Anca Simina POPESCU & Alina Georgiana HOLT, 2014. "The absorption of european funds for environmental protection during the period 2007-2013," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(16), pages 141-150, December.
    20. Watzold, Frank, 2000. "Efficiency and applicability of economic concepts dealing with environmental risk and ignorance," Ecological Economics, Elsevier, vol. 33(2), pages 299-311, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8762-:d:432804. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.