Abstract
Helping to sustain a viable rural sector, rural tourism enjoys public support in many countries. We claim that due to congestion and agglomeration externalities in the rural accommodation market, public support should be integrated into a broader local development policy that regulates the number of accommodation units in one locality. To demonstrate this, we extended an equilibrium model that accounts for product differentiation and oligopolistic competition to address congestion and agglomeration effects, and applied it to data collected in northern Israel. We show that, under the prevailing policy measures, the number of accommodation units can exceed the optimal one, leading to loss of welfare.
| Original language | English |
|---|---|
| Pages (from-to) | 685-706 |
| Number of pages | 22 |
| Journal | European Review of Agricultural Economics |
| Volume | 39 |
| Issue number | 4 |
| DOIs | |
| State | Published - Sep 2012 |
Bibliographical note
Funding Information:The work leading to this paper was funded by the Israeli Ministry of Agriculture and Rural Development Chief-Scientist fund and by The Center for Agricultural Economics Research. The paper won the Stan Czamanski prize for outstanding scholarship by a young scholar from the Israeli section of the Regional Science Association International.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 8 Decent Work and Economic Growth -
SDG 12 Responsible Consumption and Production
Keywords
- agglomeration
- congestion
- optimal size
- rural tourism
Fingerprint
Dive into the research topics of 'An optimal size for rural tourism villages with agglomeration and congestion effects'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver