Endogenous Growth and Sustainable Tourism
AbstractI build a dynamic general equilibrium model of a small economy specialized in tourism where visitors are attracted by the stock of existing environmental assets, and the stock of tourism and leisure facilities. Residents, at any date, choose the level of consumption, the number of visitors, and the quantity of resources to be devoted to abatement of pollution, the latter being generated by the existing stock of tourism facilities and by the flow of tourists. I analyze the balanced growth path properties of this economy, and focus on the sensitiveness of its qualitative dynamic behaviour, according to different subsets in the parameters space. The model is able to perform both endogenous growth and sustainability of the environmental resource. We analyse the condition for this result to hold and we find that when tourists preferences are greener (i.e. they care for environmental quality and they are crowding-adverse), the economy generally grows faster. Finally, we develop the transitional dynamics analysis in the case of constant environmental quality in the long-run. Given its generality and flexibility, we believe our model may serve as a workhorse model suitable to be used as an instrument to perform for many relevant policy exercises.
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Bibliographic InfoPaper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201234.
Date of creation: 2012
Date of revision:
growth; tourism specialization; tourism facilities; environmental assets; pollution abatement; transitional dynamics;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-06 (All new papers)
- NEP-DGE-2012-12-06 (Dynamic General Equilibrium)
- NEP-ENV-2012-12-06 (Environmental Economics)
- NEP-TUR-2012-12-06 (Tourism Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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