L'Ecotaxa balear: una solució a la congestió turística?

This paper presents the argument that when tourist activities damage the environment, public policy instruments can be used to correct what could be regarded as market failure because the environment component of tourism products is a public good which is not priced. Tourism taxes have become an important source of revenue for many tourist destinations. Ecotaxation crea te funds which may or may not be reinvested to serve environmental purposes. To illustrate this, we consider the Law 7/2001 approved by the Parliament of the Balearic Islands of a tourist tax