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An Experimental Study for Environmental Fundraising in Majorca, Spain

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dc.contributor.author López, Maria Claudia
dc.contributor.author Blanco, Esther
dc.contributor.author Coleman, Eric A.
dc.date.accessioned 2011-09-06T14:55:29Z
dc.date.available 2011-09-06T14:55:29Z
dc.date.issued 2010 en_US
dc.identifier.uri https://hdl.handle.net/10535/7503
dc.description.abstract "This paper tests the effectiveness of different institutions to fundraise for environmental projects at tourist destinations. We conduct a series of experiments with tourists visiting the Island of Majorca, Spain, and test the fundraising capacity of a voluntary donation scheme, two tax levels, and a matching instrument. Majorca is a major international tourism destination, but tourism activities continue to stress the natural environment making the destination less attractive. This is a common phenomenon in mature tourism destinations. In response, many destinations invest in projects to prevent environmental degradation or for environmental remediation. These projects are traditionally financed by means of public investment, with a consequent tax burden to residents. The most common alternative to fund environmental projects is shifting the tax burden to tourists through tourist-targeted taxation schemes. More recently, programs to gather voluntary donations from tourists have been implemented. In one treatment of our experiment, tourists are given the opportunity to make a voluntary donation to the local environmental organization involved in such projects. In high tax and low tax treatment, tourists are taxed some proportion of their initial endowment and then decide on their level of voluntary contributions from their remaining endowment. In a final treatment, the experimenters match, one-for-one, any voluntary donations. We test the crowding-out hypothesis of taxes over voluntary environmental donations and find imperfect crowding-out (from 60 to 65 percent for different tax levels). Finally, we explore potential crowding-in of matching instruments (widely used in non-tourism settings for fundraising campaigns), but do not find any support for the capacity of matching contributions to increase the level of donations. Because of imperfect crowding-out it may be reasonable to use voluntary donation programs and tourism taxes complementarily (instead of independently, as has been done in Majorca), to increase fundraising for environmental purposes." en_US
dc.language English en_US
dc.subject environment en_US
dc.subject tourism en_US
dc.subject experimental economics en_US
dc.subject crowding en_US
dc.title An Experimental Study for Environmental Fundraising in Majorca, Spain en_US
dc.type Working Paper en_US
dc.type.methodology Case Study en_US
dc.coverage.region Europe en_US
dc.coverage.country Spain en_US
dc.subject.sector New Commons en_US

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