Abstract

In this paper we want to apply the concept of intersecting externalities in the tourism, recognizing that the tourism flows produce external effects, positive and negative, on residents depending on a threshold of congestion (intersecting externalities). In literature only the hypothesis that tourism external effects are positive or negative has been studied without possibility of intersection among externalities (parallel externalities). Through a partial equilibrium model with additive social function and in presence of intersecting externalities we show that the tourism responsibility is advantageous both for tourism destination and for the tourists themselves, since it allows to raise the optimal number of the guests that the destination can receive, and since the tourists can pay a lower price to the tourism firms, due to the economic policy (Pigou'subsidy).