Climate Change, Tourism and Water Resources in the Mediterranean: A General Equilibrium Analysis

Roberto Roson and Martina Sartori

No 51, IEFE Working Papers from IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy

Abstract: This paper presents and discusses some quantitative results obtained in assessing the economic impact of variations in tourism flows, induced by climate change, for some Mediterranean countries. Estimates by a regional climate model are used to build a Tourism Climate Index, which indicates the suitability of climate, in certain locations, for general outdoor activities. As climate change is expected to affect a number of variables like temperature, wind and precipitations, it will have consequences on the degree of attractiveness of touristic destinations. We estimate the macroeconomic consequences of changing tourism flows by means of a computable general equilibrium model. We found that more incoming tourists will increase income and welfare, but this phenomenon will also induce a change in the productive structure, with a decline in agriculture and manufacturing, partially compensated by an expansion of service industries. We found that, in most countries, the decline in agriculture entails a lower demand for water, counteracting the additional demand for water coming from tourists and bringing about a lower water consumption overall.

Keywords: Climate Change; Computable General Equilibrium; Tourism; Water; Tourism Climate Index. (search for similar items in EconPapers)
JEL-codes: C68 Q26 Q54 R13 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://repec.unibocconi.it/iefe/bcu/papers/iefewp51.pdf (application/pdf)

Related works:
Working Paper: Climate Change, Tourism and Water Resources in the Mediterranean:a General Equilibrium Analysis (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcu:iefewp:iefewp51

Access Statistics for this paper

More papers in IEFE Working Papers from IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy Via Röntgen, 1 - 20136 Milano - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Carlotta Milani ().