Do sustainability policies finance local economies?

Bernini, Cristina and Cerqua, Augusto (2019): Do sustainability policies finance local economies?

Abstract

We evaluate whether adopting a well-known transition management instrument in the tourism industry can support a combined goal of sustainability and economic growth. We create a detailed dataset at the municipality level and use a recently developed policy evaluation technique to investigate the causal impact of the Blue Flag program on the local economies of coastal destinations. Estimates show that this eco-label is not effective at enhancing the local economy; findings are homogeneous across destinations. This empirical result is in line with the recent theoretical literature arguing that the transition towards growing a sustainable economy is particularly complex and a single policy does not suffice.

• Item Type: MPRA Paper
• Language: English
• Keywords: sustainability policy; eco-label; transition management; policy evaluation method
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z18 - Public Policy

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