Home⇛Asian Journal of Tourism and Hospitality Research⇛vol. 4 no. 1 (2010)

Internalizing externalities under joint production of rural tourism and agriculture: A conceptual framework

Anat Tchetchik

Discipline: tourism, transport and travel

 

Abstract:

Both rural tourism (RT) and agriculture underwent tremendous structural changes over the course of the 20 century and continue to undergo changes at the beginning of the 21t century. These changes are interrelated by many aspects. Both industries are heavily supported and regulated, by either a separate or integrated policy, aimed at providing socially optimum quantities and qualities. Relying on recent empirical evidence of synergies in the joint production of RT and agriculture, this study provides a conceptual framework for analyzing the extent to which and under what conditions joint production of both products, within the same firm, result in an efficient and socially optimal solution. Examples as to how public measures can be employed were discussed based on the difference between the two industries. While the presented framework focuses on the agricultural landscape amenity externality, it can accommodate different sources of synergies on both the demand and supply sides, and yield public policy implications accordingly.



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