IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v19y2013i1p5-35.html
   My bibliography  Save this article

Welfare and Environmental Degradation in a Tourism-Based Economy

Author

Listed:
  • Juan M. Hernández

    (Department of Quantitative Methods, University of Las Palmas de Gran Canaria, c/Saulo Torón s/n, 35017 Las Palmas, Spain)

  • Carmelo J. León

    (Department of Applied Economic Analysis, University of Las Palmas de Gran Canaria, Las Palmas, Spain)

Abstract

This paper presents an endogenous growth model for a tourism economy that takes into account the particular interrelationships between natural and physical capital, the production of tourist services and environmental degradation. The model considers both infrastructure and environmental attributes as production factors, characterized by a predator–prey relationship arising from the negative influence of the development of physical infrastructure on the natural capital. A general condition for economic sustainability is derived from the model analysis. In addition, the transitional dynamics obtained by using specific functional forms depict the empirically observed tourist life cycle and extend the optimal paths obtained from the classical Ramsey model to the context of tourism-based economies strongly dependent on fragile environmental resources.

Suggested Citation

  • Juan M. Hernández & Carmelo J. León, 2013. "Welfare and Environmental Degradation in a Tourism-Based Economy," Tourism Economics, , vol. 19(1), pages 5-35, February.
    • Handle: RePEc:sae:toueco:v:19:y:2013:i:1:p:5-35
    DOI: 10.5367/te.2013.0191
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2013.0191
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2013.0191?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bovenberg, A Lans & Smulders, Sjak A, 1996. "Transitional Impacts of Environmental Policy in an Endogenous Growth Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(4), pages 861-893, November.
    2. Kenneth L. Judd, 1998. "Numerical Methods in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100711, December.
    3. Wirl, Franz, 2004. "Sustainable growth, renewable resources and pollution: Thresholds and cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 28(6), pages 1149-1157, March.
    4. Fabio Cerina, 2007. "Tourism Specialization and Environmental Sustainability in a Dynamic Economy," Tourism Economics, , vol. 13(4), pages 553-582, December.
    5. Li, Chuan-Zhong & Lofgren, Karl-Gustaf, 2000. "Renewable Resources and Economic Sustainability: A Dynamic Analysis with Heterogeneous Time Preferences," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 236-250, November.
    6. Masao Ogaki & Carmen M. Reinhart, 1998. "Measuring Intertemporal Substitution: The Role of Durable Goods," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 1078-1098, October.
    7. Schubert, Stefan Franz & Brida, Juan Gabriel & Risso, Wiston Adrián, 2011. "The impacts of international tourism demand on economic growth of small economies dependent on tourism," Tourism Management, Elsevier, vol. 32(2), pages 377-385.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yasuhiro Nakamoto & Koichi Futagami, 2016. "Dynamic Analysis of a Renewable Resource in a Small Open Economy: The Role of Environmental Policies for the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(3), pages 373-399, July.
    2. Brida, Juan Gabriel & London, Silvia & Rojas, Mara, 2012. "El turismo como motor de crecimiento económico: impacto de las preferencias intertemporales de los agentes [The tourism as economic growth engine: the impact of the agents time preferences]," MPRA Paper 36607, University Library of Munich, Germany.
    3. Eliasson, Ludvik & Turnovsky, Stephen J., 2004. "Renewable resources in an endogenously growing economy: balanced growth and transitional dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1018-1049, November.
    4. Hanno Lustig & Stijn Van Nieuwerburgh, 2002. "Housing Collateral, Consumption Insurance and Risk Premia," Macroeconomics 0211008, University Library of Munich, Germany.
    5. Rytchkov, Oleg, 2016. "Time-Varying Margin Requirements and Optimal Portfolio Choice," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 51(2), pages 655-683, April.
    6. Muhammad Hasnain Ali & Rao Akmal Ali & Ahsan Farooq, 2021. "The Effect of Tourism, Economic Growth and Environment in Developing Countries," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 2(1), pages 24-33, June.
    7. Simone Marsiglio, 2018. "On the implications of tourism specialization and structural change in tourism destinations," Tourism Economics, , vol. 24(8), pages 945-962, December.
    8. Wei-Bin Zhang, 2015. "Oscillations in a Growth Model with Capital, Technology and Environment with Exogenous Shocks," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 12, pages 73-93, July.
    9. Simone Marsiglio, 2016. "Uncertainty, Crowding Aversion and Tourism Aversion in Tourism Destinations," Tourism Economics, , vol. 22(1), pages 111-123, February.
    10. Fujii, Tomoki & Karp, Larry S., 2006. "Numerical Analysis of Non-Constant Discounting with an Application to Renewable Resource Management," CUDARE Working Papers 7199, University of California, Berkeley, Department of Agricultural and Resource Economics.
    11. Fujii, Tomoki & Karp, Larry, 2008. "Numerical analysis of non-constant pure rate of time preference: A model of climate policy," Journal of Environmental Economics and Management, Elsevier, vol. 56(1), pages 83-101, July.
    12. López, Ramón E. & Yoon, Sang W., 2020. "Sustainable development: Structural transformation and the consumer demand," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 22-38.
    13. Xepapadeas, Anastasios, 2005. "Economic growth and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 23, pages 1219-1271, Elsevier.
    14. Isabel P. A lbaladejo Pina & María Pilar Martínez-García, 2013. "An Endogenous Growth Model of International Tourism," Tourism Economics, , vol. 19(3), pages 509-529, June.
    15. Brevik, Frode & d'Addona, Stefano, 2013. "Is Ignorance Bliss? The Cost Of Business-Cycle Uncertainty," Macroeconomic Dynamics, Cambridge University Press, vol. 17(4), pages 728-746, June.
    16. Simone Marsiglio, 2015. "Economic Growth and Environment: Tourism as a Trigger for Green Growth," Tourism Economics, , vol. 21(1), pages 183-204, February.
    17. Ludvik Eliasson, 2004. "Resource Policy in an Endogenously Growing Economy," Economics wp25_ludvik, Department of Economics, Central bank of Iceland.
    18. Karmakar, Sudipto, 2016. "Macroprudential regulation and macroeconomic activity," Journal of Financial Stability, Elsevier, vol. 25(C), pages 166-178.
    19. Albaladejo, Isabel P. & González-Martínez, María Isabel & Martínez-García, María Pilar, 2014. "Quality and endogenous tourism: An empirical approach," Tourism Management, Elsevier, vol. 41(C), pages 141-147.
    20. F. Cabo, 2001. "Towards an ecological technology for global growth in a North-South trade model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 11(1), pages 15-41.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:19:y:2013:i:1:p:5-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.