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The impact of the Australian carbon tax on the tourism industry

Author

Listed:
  • Sam Meng

    (University of New England, Australia)

  • Tien Pham

    (Griffith University, Australia)

Abstract

Using an environmentally extended social accounting matrix as well as a computable general equilibrium model, this study gauges the economic and environmental impact of Australian carbon tax, with an emphasis on the tourism industry. The results of the simulation show that a carbon tax of US$23 per tonne is very effective in achieving emissions reduction but also causes a mild economic contraction. Although the nominal value of tourism expenditure registers an insignificantly positive growth as a consequence of the carbon tax, the real expenditure value shows a significant decline in both inbound and domestic tourism demand. The household compensation package stimulates domestic tourism considerably but discourages inbound tourism further by contributing to a significant appreciation of the Australian dollar.

Suggested Citation

  • Sam Meng & Tien Pham, 2017. "The impact of the Australian carbon tax on the tourism industry," Tourism Economics, , vol. 23(3), pages 506-522, May.
    • Handle: RePEc:sae:toueco:v:23:y:2017:i:3:p:506-522
    DOI: 10.5367/te.2015.0514
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    References listed on IDEAS

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    Cited by:

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    3. Zhang, Jiekuan & Zhang, Yan, 2018. "Carbon tax, tourism CO2 emissions and economic welfare," Annals of Tourism Research, Elsevier, vol. 69(C), pages 18-30.
    4. Fangming Qin & Jingyan Liu & Gang Li, 2024. "Accounting for tourism carbon emissions: A consumption stripping perspective based on the tourism satellite account," Tourism Economics, , vol. 30(3), pages 633-654, May.
    5. Jianping Zha & Rong Fan & Yao Yao & Lamei He & Yuanyuan Meng, 2021. "Framework for accounting for tourism carbon emissions in China: An industrial linkage perspective," Tourism Economics, , vol. 27(7), pages 1430-1460, November.
    6. Weiguo Fan & Zhicheng Gao & Nan Chen & Hejie Wei & Zihan Xu & Nachuan Lu & Xuechao Wang & Peng Zhang & Jiahui Ren & Sergio Ulgiati & Xiaobin Dong, 2018. "It is Worth Pondering Whether a Carbon Tax is Suitable for China’s Agricultural-Related Sectors," Energies, MDPI, vol. 11(9), pages 1-26, August.

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