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Assessing the economic and environmental consequences of the COVID-19 tourism collapse in Andalusia: what lessons can we draw for South-East Asian regions?

Author

Listed:
  • Roberto Roson

    (Ca’ Foscari University of Venice
    Loyola Andalusia University
    GREEN Bocconi University Milan)

  • Camille Vorst

    (KU Leuven)

Abstract

This paper presents a simulation exercise undertaken with a newly available regional general equilibrium model for the Spanish region of Andalusia. The exercise is intended to assess the structural adjustment processes and impacts on the Andalusian economy directly induced by the dramatic fall in tourism expenditure which occurred in the year 2020, due to the prevention measures implemented because of the COVID-19 pandemic. We also undertake a preliminary evaluation of the impact on some environmental indicators, such as greenhouse gases emissions and air pollutants. The key insight emerging from our analysis is that the COVID crumbling of tourism demand reduces the environmental pressure but also generates very relevant distributional consequences. We believe that these insights are not peculiar to Andalusia but could be extended to many other regions in the world, especially those similar in terms of magnitude of the shock, economic structure, and labor market. We illustrate the latter point by contrasting Andalusia with a set of South-East Asian countries.

Suggested Citation

  • Roberto Roson & Camille Vorst, 2023. "Assessing the economic and environmental consequences of the COVID-19 tourism collapse in Andalusia: what lessons can we draw for South-East Asian regions?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 71(1), pages 269-297, August.
    • Handle: RePEc:spr:anresc:v:71:y:2023:i:1:d:10.1007_s00168-022-01162-6
    DOI: 10.1007/s00168-022-01162-6
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    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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