UIB
Universitat de les
Illes Balears
MASTER IN TOURISM AND ENVIRONMENTAL ECONOMICS
SUBJECT DESCRIPTOR
Academic Year 2006-2007
FACT SHEET
Subject
Name of the subject: Growth, Tourism and Environment
Code:
Type: Compulsory
Level: Postgraduate
Semester: 2st
Year of study: 1st
Teaching hours:
Language: English
Teaching staff
Responsible professor:
Name: Javier Lozano
Contact: 971172786 javier.lozano@uib.es
Prerequisites: Some previous knowledge in Microeconomics, Macroeconomics and
Environmental Economics
Number of ECTS credits: 4
Hours of taught class: 30
Hours of independent work: 70
Descriptors: PhD and Master in Tourism and Environmental Economics
COMPETENCES
General:
To express themselves in English
To organize the structure of a work process
To be familiar with scientific texts
To develop a synthetic and a knowledge integration capacity
To search for and to classify documents and data basis
To be able to form, to express and to defend concepts clearly, accepting
criticism
To convert an empirical problem in a research object and to formulate
conclusions
To apply the knowledge into new contexts
To elaborate work proposals
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To work with constancy and perseverance
To resist frustration
To develop environmental respect
To work in an international and multicultural environment
To define priorities to reach the goals
To have an innovative, prospective and proactive vision
To make decisions, to solve problems and to develop new ideas
To critically interpret and evaluate results
Specific
To interpret the statistic and econometric analysis´ results
To learn how to plan economic theory models using tools that interpret the
reality
To value different sustainable tourism developing models
To know and to estimate the tourism impacts in the economy, society and
environment
To understand a tourism destination as a system
To evaluate the consequences of the environmental policies over the tourism
economic activity
To understand the relationship between economic growth and environment
To value the tourism role in the economic growth
CONTENTS
I. Economic Growth:
Economic growth theory
Empirics of economic growth
II. Economic growth and the environment:
The physical environment as a constraint for economic growth. The laws of
thermodynamics. The “limits to growth” debate
Sustainable growth and development. Weak vs strong sustainability
Environmental growth models
Accounting for production and the environment. Measures of sustainability
Environmental Kuznets curve
The resource curse
III. Growth, tourism and the environment: (15h)
Sources of growth in a tourism economy
Is tourism specialization good for growth?
Tourism sustainability. The tourism life cycle model
Environmental growth models for tourism economies
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METHODOLOGY
1. Learning methodology: Classes
Taught classes workload: 23h
Type of group: large
2. Learning methodology: Tutoring
Taught classes workload: 2h
Type of group: Individual
3. Learning methodology: Theory studies
Independent workload: 70h
Type of group: Individual
4. Learning methodology: Evaluation
Independent workload: 3h
Type of group: Individual
5. Learning methodology: Group work presentation
Taught classes workload: 2h
Type of group: Individual
CRITERIA AND INSTRUMENTS OF ASSESSMENT AND CONTRACT
Evaluation criteria:
Final exam
Class participation
Group assignment
Evaluation instruments:
Class work: 20%
Group work: 30%
Final exam: 50%
Contract assessment:
No
TEACHING MATERIAL FOR INDEPENDENT WORK AND RECOMMENDED READING
Butler, R.W. (1980): “The Concept of a Tourist Area Cycle of Evolution: Implications for
Management of Resources”, Canadian Geographer, XXIV (1), págs. 5-12.
Easterly, W. (2001). The elusive quest for growth: economist’s adventures and misadventures in
the tropics, MIT Press.
Ekins, P. (2000): Economic Growth and Environmental Sustainability. The Prospects for Green
Growth. Routledge.
Newmayer, E. (1999). Weak versus strong sustainability. Exploring the limits of two opposing
paradigms. Edward Elgar.
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Rey-Maquieira, J., Lozano, J. y Gómez, C.M. (2005). “Land, environmental externalities and
tourism development”, en Lanza, A., Markandia, A. y Pigliaru, F. (eds.) The economics of
tourism and sustainable development. Ed. Edward Elgar
BIBLIOGRAPHY, RESOURCES AND ANNEXES
I. Economic growth:
*Barro, R. and Sala-i-Martin, X. (1995, 2003). Economic growth, The MIT Press
Romer, D. (1996, 2001). Advanced Macroeconomics Ch.1-3, McGraw-Hill.
*Sala-i-Martin, X. (1994,1999). Apuntes de crecimiento económico, Antoni Bosch.
II: Economic growth and the environment
Limits to growth. Sustainability.
*Ayres, R.U. (1997): “Comments on Georgescu-Roegen”, Ecological Economics, 22 (3), págs.
285-287.
Ayres, R.U. (1999): “Materials, economics and the environment”, In Van den Bergh, J. (ed.)
Handbook of Environmental and Resource Economics. Edward Elgar.
Beckerman, W. (1999): “A pro-growth perspective”. In Van den Bergh, J. (ed.) Handbook of
Environmental and Resource Economics. Edward Elgar.
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pp. 15-21.
Daly, H. (1999): “Steady-state economics: avoiding uneconomic growth”. In Van den Bergh, J.
(ed.) Handbook of Environmental and Resource Economics. Edward Elgar.
*Dasgupta, P.S. y Heal, G.M. (1974): “The Optimal Depletion of Exhaustible Resources”,
Review of Economic Studies, Symposium on the Economics of Exhaustible Resources,
págs.3-28.
Georgescu-Roegen, N. (1971): The Entropy Law and the Economic Process, Cambridge MA:
Harvard University Press. (Available in Spanish)
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Goodland, R. (1999): “The biophysical basis of environmental sustainability”. In Van den
Bergh, J. (ed.) Handbook of Environmental and Resource Economics. Edward Elgar.
*Hartwick, J.M. (1977): “Intergenerational Equity and the Investing of Rents from Exhaustible
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*Heal, G. (1998): “Interpreting Sustainability”, en Chichilnisky, G., Heal, G. y Vercelli, A.
(eds.), Sustainability: Dynamics and Uncertainty, Dordrecht: Kluwer Academic Publishers.
Kuik, O.J. and Gilbert, A.J. (1999): “Indicators of sustainable development”. In Van den Bergh,
J. (ed.) Handbook of Environmental and Resource Economics. Edward Elgar.
*Lomborg, B. (2001): The sceptical environmentalist. Cambridge University Press.
*Meadows D., Meadows D. y Randers, J. (1992): Beyond the Limits: Global Collapse or a
Sustainable Future, Londres: Earthscan. (Available in Spanish)
*Meadows D., Meadows D., Zahn, E. y Milling, P. (1972): The Limits to Growth, New York:
Universe Books. (Available in Spanish)
*Nordhaus, W.D, Stavins, R.N and Weitzman, M.L. (1992): “Lethal model 2: The Limits to
Growth Revisited”, Brooking Papers of economic Activity, 2, págs. 1-59.
Pezzey, J. (1989): “Economic Analysis of Sustainable Growth and Sustainable Development”,
The World Bank Policy Planning and Research Staff, Departamento de Medio Ambiente,
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*Seidl, I. Y Tisdell, C.A. (1999): “Carrying Capacity Reconsidered: from Malthus’ Population
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*Solow, R. (1974): “Intergenerational Equity and Exhaustible Resources”, Review of Economic
Studies, Symposium on the Economics of Exhaustible Resources, págs. 29-45.
*Stavins, R.N.; Wagner, A.F. and Wagner, G. (2002): “Interpreting Sustainability in Economic
Terms: Dynamic Efficiency Plus Intergenerational Equity”. FEEM Nota di Laboro 612002.
*Stiglitz, J. (1974): “Growth with Exhaustible Natural Resources: Efficient and Optimal Growth
Paths”, Review of Economic Studies, Symposium on the Economics of Exhaustible
Resources, págs.123-137.
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Van den Bergh, J. and de Mooij, R. (1999): “An assessment of the growth debate”. In Van den
Bergh, J. (ed.) Handbook of Environmental and Resource Economics. Edward Elgar.
WCED (The World Commission on Environment and Development) (1987): Our Common
Future, Oxford: Oxford University Press. (available in Spanish)
Environmental growth models
*Barbier, E.B. (1999): “Endogenous Growth and Natural Resource Scarcity”, Environmental
and Resource Economics, 14, págs. 51-74.
*Beltratti, A. (1996): Models of Economic Growth with Environmental Assets, Dordrecht:
Kluwer Academic Publishers.
*Bovenberg, A.L. y de Mooij, R.A. (1997): “Environmental Tax Reform and Endogenous
Growth”, Journal of Public Economics, 63, págs. 207-237.
*Bovenberg, A.L. y Smulders, S. (1995): “Environmental Quality and Pollution-Augmenting
Technological Change in a Two-Sector Endogenous Growth Model”, Journal of Public
Economics, 57, págs. 369-391.
*Chevé, M. (2000): “Irreversibility of Pollution Accumulation”, Environmental and Resource
Economics, 16, págs. 93-104.
Dasgupta, P.S. y Heal, G.M. (1979): Economic Theory and Exhaustible Resources, Cambridge:
Cambridge University Press.
*Elbasha, E.H. y Roe, T.L. (1996): “On Endogenous Growth: The Implications of
Environmental Externalities”, Journal of Environmental Economics and Management, 31,
págs. 240-268.
*Gradus, R. y Smulders, S. (1993): “The Trade-off between Environmental Care and Long-term
Growth-Pollution in Three Prototype Models”, Journal of Economics, 1, págs. 25-51.
Heal, G. (1998a): Valuing the Future. Economic Theory and Sustainability, New York:
Columbia University Press.
*Hofkes, M.W. (1996): “Modelling Sustainable Development: an Economy-Ecology Integrated
Model”, Economic Modelling, 13, págs. 333-353.
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*Jones, L.E. y Manuelli, R.E. (2001): “Endogenous Policy Choice: The Case of Pollution and
Growth”, Review of Economic Dynamics, 4, págs. 369-405.
*Krautkraemer, J.A. (1985): “Optimal Growth, Resource Amenities and the Preservation of
Natural Environments”, Review of Economic Studies, 52, págs. 153-170.
*Krautkraemer, J.A. y Batina, R.G. (1999): “On Sustainability and Intergenerational Transfers
with a Renewable Resource”, Land economics, 75, págs. 167-184.
Michel, P. y Rotillon, G. (1995): “Disutility of Pollution and Endogenous Growth”,
Environmental and Resource Economics, 6, págs. 279-300.
*Mohtadi, H. (1996): “Environment, Growth and Optimal Policy Design”, Journal of Public
Economics, 63, págs.119-140.
*Rubio, S.J. y Aznar, J. (2000): “Sustainable Growth and Environmental Policies”, FEEM, nota
di laboro 25.00.
*Scholz, C.M. y Ziemes, G. (1999): “Exhaustible Resources, Monopolistic Competition, and
Endogenous Growth”, Environmental and Resource Economics, 13, págs. 169-185.
*Smulders, S.A. (1995): “Environmental Policy and Sustainable Economic Growth; an
endogenous
growth
perspective”,
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págs.
163-195.
http://center.uvt.nl/staff/smulders/#Pub
*Smulders, S.A. (1995): “Entropy, environment and endogenous economic growth”. Journal of
International
Tax
and
Public
Finance,
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pp.
317-338.
http://center.uvt.nl/staff/smulders/#Pub
Smulders, S.A. (1999): “Endogenous growth theory and the environment”. In Van den Bergh, J.
(ed.) Handbook of Environmental and Resource Economics. Edward Elgar.
Smulders, S.A. (2000): “Economic Growth and Environmental Quality”, en Folmer, H. y Gabel,
L. (eds.), Principles of Environmental and Resource Economics, Cheltenham: Edward
Elgar.
*Smulders, S.A. y Gradus, R. (1996): “Pollution Abatement and Long-Term Growth”,
European Journal of Political Economy, 12, págs. 505-532.
*Stokey, N. (1998): “Are There Limits to Growth?”, International Economic Review, 39 (1),
págs. 1-31.
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*Tahvonen, O. y Kuuluvainen, J. (1993): “Economic Growth, Pollution and Renewable
Resources”, Journal of Environmental Economics and Management, 24, págs. 101-118.
van der Ploeg, F. y Withagen, C. (1991): “Pollution Control and the Ramsey Problem”,
Environmental and Resource Economics, 1, págs. 215-236.
*Vellinga, N. (1999): “Multiplicative Utility and the Influence of Environmental Care on the
Short-Term Economic Growth Rate”, Economic Modelling, 16, págs. 307-330.
Verdier, T. (1995): “Environmental Pollution and Endogenous Growth: A Comparison between
Emission Taxes and Technological Standards”, en Carraro, C. y Filar, J.A. (ed.), Control
and Game-Theoretic Models of the Environment, Boston: Birkhäuser.
Environmental Kuznets curve
Barbier, E.B. (1999): “Development, poverty and the environment”. In Van den Bergh, J. (ed.)
Handbook of Environmental and Resource Economics. Edward Elgar.
*Brock W.A. y Taylor, M.S. (2004).”Economic Growth and the Environment: A Review of
Theory and Empirics”, en Aghion, P. y Durlauf, S. (eds.) Handbook of Economic Growth,
Elsevier. http://emlab.berkeley.edu/users/chad/Handbook.html
*Dasgupta,, S.; Laplante, B.; Wang, H. and Wheeler, D (2002): “Confronting the Environmental
Kuznets Curve”. Journal of Economic Perspectives, 16(1), pp. 147-168.
De Bruyn, S.M. y Heintz, R.J (1999). “The environmental Kuznets curve Hipotesis”. En van der
Bergh (ed.) Handbook of environmental and resource economics. Edward Elgar.
*Grossman, G.M. y Krueger, A.B. (1995): “Economic Growth and the Environment”, Quarterly
Journal of Economics, 110, págs. 353-378.
*Selden, T.M. y Song, D. (1995): “Neoclassical Growth, the J Curve for Abatement and the
Inverted U Curve for Pollution”, Journal of Environmental Economics and Management,
29, págs. 162-168.
Resource curse
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*Corden, W.M. (1984) “Booming sector and Dutch disease economics: survey and
consolidation.” Oxford Economic Papers 36, pp. 359-380.
*Corden,W.M. and J.P. Neary (1982) “Booming sector and de-industrialisation in a small open
economy.” Economic Journal 92, pp. 825-848.
*Mehlum, H., Moene, K.O., Torvik, R., (2005): “Institutions and the resource curse”. The
Economic
Journal
(forthcoming).
http://globetrotter.berkeley.edu/macarthur/inequality/papers/MoeneInstitutions&ResourceCurse.pdf
*Sachs, J.D., Warner, A.M., (1995): “Natural resource abundance and economic growth”.
NBER Working Paper No. 5398.
*Sachs, J.D., Warner, A.M. (2001): “The curse of natural resources”. European Economic
Review, 45, pp. 827-838.
Growth, tourism and the environment
Economic growth and tourism specialization. Sources of growth in tourism economy.
*Balaguer, J. and Cantavella-Jordà. M. (2002). “Tourism as a long-run economic growth factor:
the Spanish case”. Applied Economics 34(7)
*Copeland, B.R. (1991): “Tourism, Welfare and De-Industrialization in a Small Open
Economy”, Economica, 58, págs. 515-529.
*Croes, R. (In Press): “A paradigm shift to a new strategy for small island economies:
Embracing demand side economics for value enhancement and long term economic
stability”. Tourism Management
*Dwyer, L.; Forsyth, P. and Spurr, R. (2003): “Inter-industry effects of tourism growth:
implications for destination managers”. Tourism Economics, 9(2), pp. 117-132.
Gooroochurn, N. and Blake, A.: “Tourism Immiserization: Fact or Fiction?”. Paper presented at
the Second International Conference on Tourism and Sustainable Development. Macro and
Micro Economic Issues (Sardinia, Sep 2005)
Lanza, A. y Pigliaru, F. (1994): “The Tourist Sector in the Open Economy”, Rivista
Internazionale di Economiche e Commerciali, 41(1), págs. 15-28.
*Nowak, J.; Sahli, M. and Sgro, P. (2003): “Tourism, trade and domestic welfare”. Pacific
Economic Review, 8(3), pp. 245-258.
*Pigliaru, F., Lanza, A. And Brau, R. (2003). “How Fast are the Tourism Countries Growing?
The cross-country evidence”. FEEM Working paper 85.03
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Sahli, M. and Nowak, J.: “Migration, unemployment and net benefits of inbound tourism in a
developing country”. Paper presented at the Second International Conference on Tourism
and Sustainable Development. Macro and Micro Economic Issues (Sardinia, Sep 2005)
Sequeira, T.N. and Campos, C. (2005) “International Tourism and Economic Growth: a Panel
Data Approach” FEEM Working Paper (forthcoming)
*Smeral, E. (2003): “A structural view of tourism growth”. Tourism Economics, 9(1), pp. 77-93.
Tourism sustainability. Tourism life cycle model
*Davies, T. y Cahill, S. (2000): “Environmental Implications of the Tourism Industry”,
Resources for the Future, Discussion paper 00-14.
*Garrod, B. y Fyall, A. (1998): “Beyond the Rhetoric of Sustainable Tourism?”, Tourism
Management, 19 (3), págs. 199-212.
*Hunter, C. (1997): “Sustainable Tourism as an Adaptative Paradigm”, Annals of Tourism
Research, 24 (4), págs. 850-867.
*Hunter, C. y Green, H. (1995): Tourism and the Environment. A sustainable Relationship?,
Londres: Routledge.
Lozano, J., Gómez, C.M. y Rey-Maquieira, J. (2005). “An analysis of the evolution of tourism
destinations from the point of view of the economic growth theory” FEEM Working Paper
(forthcoming)
*Lundtorp, S. y Wanhill, S. (2001): “The Resort Lifecycle Theory. Generating Processes and
Estimation”, Annals of Tourism Research, 28(4), págs. 947-964.
Environmental growth models for tourism economies
Cerina, F. (2005). “Tourism specialization and sustainability: a long-run policy analysis” FEEM
Working Paper (forthcoming)
*Gómez, C.M. Lozano, J. y Rey-Maquieira, J. (2004) “Environmental and Tourism Policy in a
Dynamic
Model
of
an
Economy
Specialized
in
Tourism”
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http://www.uib.es/depart/deaweb/personal/profesores/personalpages/javierlozano/articulos/
env%20policy%20tourism%20economy.pdf
*Mananyi, A. (1998): “Optimal Management of Ecotourism”, Tourism Economics, 4(2), págs.
147-169.
LINK TO SUBJECT TEACHING GUIDE
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