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Pollution Adverse Tourists and Growth

Author

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  • S. Giannoni
  • F. Cerina

    ()

Abstract

We build a growth model in which tourism development generates pollution while tourists are pollution adverse. We establish that long run positive growth exists only for a particular value of tourists pollution adversion. Furthermore, we show that an intensive use of facilities is associated with a lower growth rate for destinations specialized in green tourism. We also see that if the destination can choose the degree of use of facilities, tourism will generate positive growth only if tourists are not too much pollution adverse. In this case the growth rate of the economy will be a negative function of touristsadversion to pollution so that the "greener" the kind of tourism the destination address to, the slower its growth.

Suggested Citation

  • S. Giannoni & F. Cerina, 2008. "Pollution Adverse Tourists and Growth," Working Paper CRENoS 200822, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  • Handle: RePEc:cns:cnscwp:200822
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    References listed on IDEAS

    as
    1. Guido Candela & Roberto Cellini, 2006. "Investment in Tourism Market: A Dynamic Model of Differentiated Oligopoly," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(1), pages 41-58, September.
    2. Smulders, Sjak & Gradus, Raymond, 1996. "Pollution abatement and long-term growth," European Journal of Political Economy, Elsevier, vol. 12(3), pages 505-532, November.
    3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    4. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    5. F. Cerina, 2006. "Tourism specialization and environmental sustainability in a dynamic economy," Working Paper CRENoS 200602, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    6. Hernandez, Juan M. & Leon, Carmelo J., 2007. "The interactions between natural and physical capitals in the tourist lifecycle model," Ecological Economics, Elsevier, vol. 62(1), pages 184-193, April.
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    Cited by:

    1. F. Cerina, 2012. "Endogenous Growth and Sustainable Tourism," Working Paper CRENoS 201234, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

    More about this item

    Keywords

    growth; tourism specialization; use of facilities; pollution;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O41 - Economic Development, Innovation, 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

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