Tourism Development and Environmental Pollution: A Dynamic Analysis

Manash Ranjan Gupta () and Priya Brata Dutta ()
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Manash Ranjan Gupta: Indian Statistical Institute, Economic Research Unit
Priya Brata Dutta: Visva-Bharati University, Economics and Politics Department

A chapter in Analytical Issues in Growth & Structural Change, Macroeconomy, Security, and Sustainability of India's Economic Development, 2026, pp 257-275 from Springer

Abstract: 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.

Keywords: Environmental pollution; Non-traded tourism service; Capital accumulation; Economic growth; Long-run equilibrium; Abatement expenditure; Intertemporal optimization (search for similar items in EconPapers)
JEL-codes: F18 F64 O44 Q56 Z32 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-95-5242-9_13

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DOI: 10.1007/978-981-95-5242-9_13

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