Abstract
This article contributes to the debate about whether the investment in tourism sustainability is economically profitable for firms. Specifically, using cross-sectional analysis, we explore the existence of a causal link between the possession of a voluntary sustainable certification, Eco-Management and Audit Scheme (EMAS), and the increase in the prices of hotel accommodation. For this, the hedonic price method is used. Prior to the hedonic estimation, the propensity score-matching methodology is applied in order to control for self-selection bias. The analysis is carried out for coastal hotels located in the southern area of Tenerife (Canary Islands, Spain) which merits attention as a typical mature sun and beach tourist destination. The study does not reveal any significant effects of sustainable certification on the prices of accommodations, which would appear to explain the low participation of establishments in the program. We conclude by providing some useful insights on measures aimed at improving related policies.
Highlights
Over the last decades, sustainability has become one of the major issues facing the tourism sector
Let i denote the index of n accommodations in the database, n1 denotes the number of accommodations with Eco-Management and Audit Scheme (EMAS) certification, n0 denotes the number of accommodations without certification, and xi indicates the vector of matching variables for accommodations i
In order to encourage the development of sustainable tourism, a wide range of initiatives are being carried out by institutions and social agents
Summary
Sustainability has become one of the major issues facing the tourism sector. In order to reduce these inappropriate effects, international institutions, national and local governments, firms and destinations have carried out many actions, for example, urban restrictions, limitation of the growth of hotel beds, development of innovative energy efficient technology in the sector and the establishment of well-known sustainable tourism certifications. Sustainable tourism certification consists of programs that measure a range of environmental, socio-cultural and economic equity issues [3]. These certifications provide benefits for tourists, for firms and for communities, given that they generate positive externalities. Firms can increase their price and/or demand share—and their income—because tourists recognize the label associated with sustainable certification which is a marketing advantage [11,12]. If the aforementioned cost savings and income exceed the costs of the investment in sustainability, will the firms continue to adhere to the certification, which will convert these programs into effective environmental policy instruments [13]
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