Protected areas and local economic development

Protected natural areas are increasingly seen as tools for economic development in sparsely populated areas. In this context, we examine the impact of Grand Site de France and World Heritage List designations on tourism supply, other local industries (retail trade and real estate), and demographics in surrounding areas. Focusing on the Cha & icirc;ne des Puys-Limagne Fault, a geological site in France, we use difference-in-differences with matching. While we observe relatively diffuse demographic effects, we find that only urbanised municipalities near the site have benefited from tourism, raising questions about the effectiveness of protected areas for promoting development in low-density regions.