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Tourism Development and Environmental Pollution: A Dynamic Analysis

In: Analytical Issues in Growth & Structural Change, Macroeconomy, Security, and Sustainability of India's Economic Development

Author

Listed:
  • Manash Ranjan Gupta

    (Indian Statistical Institute, Economic Research Unit)

  • Priya Brata Dutta

    (Visva-Bharati University, Economics and Politics Department)

Abstract

We develop a two sector dynamic model of a less developed economy with intertemporal utility maximizing behaviour of the household. The model consists of an imported traded good sector and a non-traded tourism service sector serving international tourists. Revenue earned from tourism finances imports. The model takes care of the negative effect of tourism development on environmental pollution. Environmental quality and capital stock accumulate over time. We analyse properties of the long-run equilibrium and show that the unique long-run equilibrium point satisfies saddle point stability.

Suggested Citation

  • Manash Ranjan Gupta & Priya Brata Dutta, 2026. "Tourism Development and Environmental Pollution: A Dynamic Analysis," India Studies in Business and Economics, in: Biswajit Chatterjee & Asim K. Karmakar (ed.), Analytical Issues in Growth & Structural Change, Macroeconomy, Security, and Sustainability of India's Economic Development, pages 257-275, Springer.
    • Handle: RePEc:spr:isbchp:978-981-95-5242-9_13
    DOI: 10.1007/978-981-95-5242-9_13
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    Keywords

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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • 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
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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