The role of globalization, real income, tourism in environmental sustainability target. Evidence from Turkey.

This study focuses on the dynamic behaviour of a small open economy
specialized in tourism based on natural resources. The author analyses
the steady-state properties in two scenarios, with and without public
abatement expenditures, and a unique local saddle-point equilibrium
is found for both cases. The analysis of the dynamics provides an
alternative explanation for the observed positive growth performance
of small open tourism-based economies and for the worldwide
increases in tourist inflows, which are seen as transitional phenomena
towards the path to the steady state. Moreover, in defining the
conditions under which tourism development, improvements in
environmental quality and economic growth can simultaneously occur,
the model provides theoretical microfoundations for sustainable
tourism. Finally, in both scenarios, the author analyses the issue of
market failures, taking into account two different kinds of externality
and finding the respective optimal tax rates that will induce private
agents to replicate the social optimum.

Tourism specialization and environmental sustainability in a dinamic economy

The nexus between COVID-19 deaths, air pollution and economic growth in New York state: Evidence from Deep Machine Learning.

In the last two decades, the tourism and energy sectors have grown rapidly and boosted economic growth, but it is inevitable that these sectors will cause environmental changes. So far, attempts have been made to determine the impact of the tourism and energy sectors on environmental degradation by examining pollution indicators such as CO2 emissions and ecological footprint. However, these indicators neglect the supply side of the environment. In this context, this paper, for the first time, examines the influence of tourism, income, and energy consumption on the load capacity factor that results from dividing biocapacity by ecological footprint. Thus, the study aims to conduct a comprehensive sustainability analysis for Turkey by assessing the environmental quality on the supply and demand side. For this purpose, the study employs the novel dynamic Autoregressive-Distributed Lag (ARDL) simulations for the period 1965-2017, and the results indicate that tourist arrivals, energy consumption, and economic growth have a negative long run effect on the load capacity factor. Among these factors, only economic growth exerts a significant impact on the load capacity factor in both the short and long run. In the long run, the negative environmental effect of economic growth is less than in the short run. Therefore, the environmental Kuznets curve hypothesis is valid for Turkey. Based on the results, some policy recommendations are proposed to help Turkey improve its environmental quality.

Exploring the impact of tourism and energy consumption on the load capacity factor in Turkey: a novel dynamic ARDL approach.

This study examines the dynamic linkages between alternative and nuclear energy consumption, tourism receipts, bank-specific factors, and environment and resource factors in a heterogeneous panel of countries for the period 1995–2016. The study also addresses the United Nations sustainable development agenda under a resource conservation framework across countries. A two-step differenced Generalized Method of Moments (GMM) estimator is employed for robust inferences. The results show that bank-specific factors substantially reduce resource depletion, whereas international tourism increases energy resource depletion and carbon emissions across countries. Nuclear energy consumption reduces resource depletion, whereas industrial value added increases resource depletion and carbon emissions; thus, it is imperative to devise strong policies for sustainable production across countries. The results of panel causality tests confirm different causality patterns among the studied variables. The study concludes that an environmental and resource conservation process needs sustainable policy instruments, including cleaner production techniques, renewable energy sources, and sustainable production and consumption to achieve green growth.

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Energy, tourism, finance, and resource depletion: panel data analysis

We develop a two-sector dynamic model of a less-developed economy with an imported traded good sector and with a non-traded tourism service sector serving international tourists. Revenue earned fro...

Tourism development, environmental pollution and economic growth: A theoretical analysis

This article develops a static three-sector and five-factor competitive general equilibrium model of a small open economy: sector 1 is the rural agricultural sector, which produces products using i...

Wage Inequality and Unemployment in the Presence of Imported Intermediate Goods: A Theoretical Analysis:

In this paper, we develop a sectoral model of a less developed economy with a backward agricultural sector dependent on unskilled labour and with an advanced industrial sector dependent on capital and skilled labour and also with a private education sector whose role is to transform an unskilled labourer into a skilled one. Using a Ramsey framework of consumption saving allocation, we analyse how the economy grows over time through accumulation of capital and through transformation of unskilled labour into skilled labour. Such a model helps us to analyse how the structural shift from agriculture to industry takes place and what role do sector specific polices play in this context. We analyse short-run as well as long run effects of sector specific policies on the degree of wage income inequality as well as on the endogenous rate of economic growth; and find that sector specific policies produce opposite effects. Subsidization to agricultural sector leads to an improvement in the degree of wage income inequality but lowers the rate of economic growth in the long run. On the other hand, subsidization or protection to the manufacturing sector produces just the opposite result.

Skilled-unskilled wage inequality and structural transformation in a dual economy

We develop a static North–South model where North and South are interlinked through international tourism. Northern consumers have demand for southern non-tradable tourism service. Northern develop...

International Tourism in a North–South Model: A Theoretical Analysis:

We develop an aggregate growth model with environmental pollution and unemployment equilibrium to be explained by efficiency wage hypothesis. Environmental quality is degraded due to emissions generated from production and is improved by abatement expenditure. The efficiency of a worker varies positively with its wage, unemployment rate and environmental quality. In the short-run equilibrium, an exogenous improvement in environmental quality given the capital stock lowers efficiency wage rate and unemployment rate but raises the rental rate on capital and the level of output; and an exogenous increase in capital stock given the environmental quality raises efficiency wage rate and level of output but lowers rental rate on capital and unemployment rate. Capital stock and environmental quality accumulate over time. A proportional tax is imposed on the rental income on capital to finance the abatement expenditure; and households’ savings is invested. An increase in the tax rate raises the capital stock,
 national income and the environmental quality but lowers the unemployment rate in the long run equilibrium.

Priya Brata Dutta

Papers

Tourism development, environmental pollution and economic growth: A theoretical analysis

Wage Inequality and Unemployment in the Presence of Imported Intermediate Goods: A Theoretical Analysis:

Skilled-unskilled wage inequality and structural transformation in a dual economy

International Tourism in a North–South Model: A Theoretical Analysis:

Taxation, capital accumulation, environment and unemployment in an efficiency wage model