A special paper published along with the ESRI's Spring economic commentary has called for the full economic cost of providing infrastructure to holiday homes to be levied on their owners.
The demand for holiday homes in the BMW region, fuelled in part by tax breaks, has pushed up the price of housing in the region, according to Prof John FitzGerald.
He says that a property tax would be preferable however this had proved unacceptable to the public according to the Professor.
Professor FitzGerald said the long-term economic problems posed by the reduction in the competitiveness of the BMW region could be eradicated if those buying holiday homes paid the full economic cost in terms of both infrastructure and the "negative externalities (in terms of higher prices for residents)".