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Sustainable Development and Economic Instruments: the case of Hvar, Croatia

Tourism may have significant environmental impacts on tourist destinations, including congestion and pollution. These environmental concerns have led to moves towards the development of sustainable tourism in recent years. The use of environmental taxes to fund or promote mitigation of the negative environmental consequences has expanded over recent years, with varying degrees of success. This paper attempts to assess the willingness-to-pay for environmental quality in the Croatian island of Hvar and presents an overview of proposals for an economic instrument to address environmental problems arising from tourism in Hvar.

sustainable tourism; economic instruments; environmental taxes; Croatia

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