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Restricting the construction of second homes in tourist destinations: an effective intervention towards sustainability?

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  • Luzius Stricker

    (Amt für Wirtschaft und Tourismus (AWT))

Abstract

This study evaluates the impact of the second home restriction (Lex Weber) on construction investments in Switzerland. Different specifications and variations are defined, and the changes in investment behaviour are analysed. A first basic model considers the variation in investments through a discrete event study analysis, while a second model includes a continuous treatment variable to account for the different strong impacts of the law in various municipalities. In the second step, these two basic models are developed in a way that allows to include controls for the different cantonal legislation. The results show that with a delay of three years (due to the expiration of permits), the law had the desired impact on new construction investments. Additionally, the importance of the changes on different outcomes in the local economy and tourism industry are discussed.

Suggested Citation

  • Luzius Stricker, 2022. "Restricting the construction of second homes in tourist destinations: an effective intervention towards sustainability?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 158(1), pages 1-16, December.
    • Handle: RePEc:spr:sjecst:v:158:y:2022:i:1:d:10.1186_s41937-022-00087-3
    DOI: 10.1186/s41937-022-00087-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Construction; Second homes; Housing investments; Tourism development; Switzerland;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy

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