The Agreement Analysis of Public Welfare and Environmental Quality in Scenic Spots

Development economics views that improvement of public welfare leads to enhancement of environmental quality. This view, however, does not hold much for scenic spots: improvement of public welfare can sometimes have negative effect on environmental quality, the agreement relationship between them, therefore, is worth exploration. From the aspect of consumer behavior, and according to the explanation of neoclassic economics on the incompleteness between price and preference (change of price is considered to have no effect on indifference curve, but when price conveys information about product quality, this explanation remains a reasonable approximation), this paper explores this issue by resorting to a model relating agreement of public welfare and environmental quality, and explains how to reasonably relate public welfare and environmental quality to achieve the sustainability in regional tourism industry, this paper offers some policy advice in the end.