The Relation Between Public Services And The Demand For Sustainable City Tourism

This paper investigates the impact of cultural goods on the housing market considering environmental factors related to tourism in an Italian city. In the first section, the willingness to pay for cultural goods is estimated by using the hedonic pricing model for the commercial property (tourism). In this regression, the link between environmental factors and the number of tourists is studied, which in turn quantifies the prospects for ‘sustainable’ or at least environmentally friendly tourism. On the basis of the results further questions are posed, e.g., whether tourism increases social welfare for local residents – also in conjunction with public policy.