Measuring the Economic Impact of a Voluntary Sustainable Tourism Certification

• Main Authors: Amelia Bilbao-Terol, Celia Bilbao-Terol
• Format: Article
• Language: English
• Published: MDPI AG 2020-07-01
• Series: Sustainability
• Subjects: sustainable tourism; sustainable certification; propensity score-matching; market value; hedonic methods; Tenerife (Spain)
• Online Access: https://www.mdpi.com/2071-1050/12/13/5465

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.