How Trade in Ecotourism Services Can Save Nature: A Policy Scenario Analysis

Author: 
Hübler, Michael
Place: 
Oxon
Publisher: 
Taylor & Francis Group
Date published: 
2020
Record type: 
Journal Title: 
Development Southern Africa
Source: 
Development Southern Africa Vol 36 No 1 2019 pp. 127-143
Abstract: 

This article considers a developing country which is abundant in a non-renewable natural resource but scarce in industrial goods. The resource can be used for consumption or for exporting ecotourism services. The article examines scenarios in which technical progress, rising demand for tourism services and higher preferences for the environment reduce today's optimal depletion of the resource. Myopic behaviour and future terms-of-trade gains, however, encourage overexploitation of the resource. As a remedy, the article derives the socially optimal subsidy for the conservation of the resource and discusses North-South transfer schemes which save nature via trade in ecotourism services. Numerical examples suggest that under optimistic assumptions a subsidy rate of about 10% would suffice to preserve the natural resource in the developing country for the provision of tourism services. The resulting cost burden would represent less than 0.03% of the Northern GDP.

Language: 
Region focus: 

CITATION: Hübler, Michael. How Trade in Ecotourism Services Can Save Nature: A Policy Scenario Analysis . Oxon : Taylor & Francis Group , 2020. Development Southern Africa Vol 36 No 1 2019 pp. 127-143 - Available at: http://library.africa-union.org/how-trade-ecotourism-services-can-save-nature-policy-scenario-analysis

Printer-friendly version Send by email