University of Malta. Islands and Small States Institute
Abstract
This note will present a diagram which can be used when discussing tourism carrying
capacity. It borrows from the theory of optimal pollution control, found in most
Environmental Economics textbooks. The diagram presented here relates to the need to take
account of income foregone as a result of a reduction in tourism inflows, juxtaposed against
the environmental damage and social discomfort that can result from excessive amount of
tourism business.peer-reviewe