Understanding the role of the environment on the dynamic of tourism and economic growth: New assumptions in terms of time and population growth rate

Pilar Lorenzo; Martín Olivera

doi:10.3934/jdg.2023007

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2023, Volume 10, Issue 4: 370-389. Doi: 10.3934/jdg.2023007

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Understanding the role of the environment on the dynamic of tourism and economic growth: New assumptions in terms of time and population growth rate

Pilar Lorenzo^1, and
Martín Olivera^1,2, ,

1.
Universidad de la República, Uruguay
2.
Universidad de la República, Uruguay; Università degli Studi di Sassari, Italy

^*Corresponding author: Martín Olivera
^*Corresponding author: Martín Olivera

Received: August 2023

Early access: August 2023

Published: October 2023

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Abstract

Since the increasing importance of the study of the impact of tourism sector on economic growth and the relevance of understanding and incorporating environmental facts on the tourism dynamic, this paper seeks to contribute by modelling a scheme of an economy specialized on tourism activity and its impact of growth when environmental sustainability in taking into account. The population dynamic is highlighted as a contribution to understand the classical growth model when population law is different from the classical exponential law by proposing a logistic population law. Results indicate the existence of a unique equilibrium with positive physical and natural capital, consumption and pollution. The stability depends on the parameters, being in many cases a stable one.

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Mathematics Subject Classification: Primary: 91B55, 91B62, 37N40.

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Figure 1. Stability analysis. Source: own elaboration. Red: stable scenarios

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Figure 2. Global tourism activity

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Figure 3. Carbon Dioxide Emissions

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Figure 4. Population Growth

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Table 1. Parameters' setting

Parameter	Description	Values Ex.1	Value Ex.2
$ \omega $	Relative power of nat. capital on the tourism supply	$ (0, 25;0, 75) $	$ 0.5 $
$ \eta $	Relative power of fixed capital on the tourism supply	$ (0, 25;0, 75) $	$ 0.7 $
$ \alpha $	Relative power of nat. capital on the tourism demand	$ (0, 25;0, 75) $	$ 0.5 $
$ \phi $	Relative power of pollution on the tourism demand	$ (0, 25;0, 75) $	$ 0.7 $
$ \epsilon $	Demand price elasticity	$ (1;2) $	$ 1.2 $
$ \rho $	Intertemporal discount rate of consumers	$ (0, 25;0, 75) $	$ 0.3 $
$ \Gamma $	Autorregression pollution coefficient	$ (0, 1;1) $	$ (0, 1;1) $
$ \delta $	Fixed capital depreciation rate	$ (0, 25;0, 75) $	$ 0.3 $
$ \xi $	Velocity of depreciation / regeneration of nat. capital	$ (0, 1;2) $	$ (0, 1;2) $

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