nep-tur New Economics Papers
on Tourism Economics
Issue of 2012‒12‒06
four papers chosen by
Antonello Scorcu
University of Bologna

  1. Endogenous Growth and Sustainable Tourism By Fabio Cerina
  2. Skills Policies for Economic Diversification in the Former Yugoslav Republic of Macedonia- Enhancing local skills policies for the food and tourism sectors By Mojsoska Blazevski, Nikica; Kostadinov, Aleksandar; Gregg , Con; Uexkull, V. , Erik
  3. Agri-environmental policy and urban sprawl patterns: A general equilibrium analysis By Thomas Coisnon; Walid OUESLATI; Julien Salanié
  4. The value of bluer skies: How much do consumers gain from entry by JetBlue Airways in long-haul US Airline Markets? By Hüschelrath, Kai; Müller, Kathrin

  1. By: Fabio Cerina
    Abstract: I build a dynamic general equilibrium model of a small economy specialized in tourism where visitors are attracted by the stock of existing environmental assets, and the stock of tourism and leisure facilities. Residents, at any date, choose the level of consumption, the number of visitors, and the quantity of resources to be devoted to abatement of pollution, the latter being generated by the existing stock of tourism facilities and by the flow of tourists. I analyze the balanced growth path properties of this economy, and focus on the sensitiveness of its qualitative dynamic behaviour, according to different subsets in the parameters space. The model is able to perform both endogenous growth and sustainability of the environmental resource. We analyse the condition for this result to hold and we find that when tourists preferences are greener (i.e. they care for environmental quality and they are crowding-adverse), the economy generally grows faster. Finally, we develop the transitional dynamics analysis in the case of constant environmental quality in the long-run. Given its generality and flexibility, we believe our model may serve as a workhorse model suitable to be used as an instrument to perform for many relevant policy exercises.
    Keywords: Growth; Tourism Specialization; Tourism Facilities; Environmental Assets; Pollution Abatement; Transitional Dynamics
    JEL: Q56 O41 L83
    Date: 2012
  2. By: Mojsoska Blazevski, Nikica; Kostadinov, Aleksandar; Gregg , Con; Uexkull, V. , Erik
    Abstract: This report presents an application of the ILO’s Skills for Trade and Economic Diversification (STED) methodology to two sectors – tourism and food industries – of the economy of the former Yugoslav Republic of Macedonia. The STED methodology provides strategic guidance for the integration of skills development in sectoral policies. It is designed to support growth and decent employment creation in sectors that have the potential to increase exports and to contribute to economic diversification. It has been developed in recognition of the fact that having the right skills among workers is crucial for firms or industries to succeed in trade, and because understanding trade is important to providing workers with the right skills. Availability of skilled workers contributes to higher and more diversified exports, more FDI, higher absorption of technology, and more sustainable growth and productive employment creation. At the same time, skills are the key determinant for a worker’s success in finding a good job and making a living. Employment promotion and defining the priority sectors for future economic development in terms of skills is still a challenging task for many of the institutions and stakeholders in the former Yugoslav Republic of Macedonia. In this context, investment in human resources is central and formulating up-to-date policy advice on how to increase economic diversification through strengthening the business enabling environment with a focus on skill endowments and export orientation is key to fostering employment generation. While analysis at the national level can give useful directions for sustainable growth and employment creation, an in-depth analysis of individual sectors is useful – and indeed necessary – in order to design concrete policy proposals. It is for these reasons that two sectors - Tourism and Food Industries - were analysed in some detail. The analysis describes the obstacles to enhanced economic diversification and sustainable growth in terms of the business environment, the availability of skills, and the situation of global markets for Macedonian exports. A particular emphasis was put on identification of skill needs at regional and local level through the creation of two working groups representing trend-setting companies from each selected sector, employers’ organizations, workers’ organizations, practitioners and teachers. The results of the analysis have been incorporated in local action plans for employment, using the LED approach, for the regions of Krushevo, Prilep and Resen.
    Keywords: food industry / beverage industry / tourism / industrial production / production diversification / trade / human capital skilled worker skill requirements employment wages Macedonia;former Yugoslav Repblic
    JEL: O11 O1 E24 B22 J24
    Date: 2012
  3. By: Thomas Coisnon (Granem - Groupe de Recherche ANgevin en Economie et Management - Agrocampus Ouest - INRA : UMR49); Walid OUESLATI (UMR GRANEM - UMR MA 49 – Université d'Angers et Agrocampus Ouest - Université d'Angers); Julien Salanié (Granem - Groupe de Recherche ANgevin en Economie et Management - Agrocampus Ouest - INRA : UMR49)
    Abstract: This paper develops a spatial general equilibrium analysis of an agri-environmental policy in a suburban context. We present a static monocentric model of an open city where agricultural bid-rents and agricultural amenities vary endogenously in space. Amenities are valued by households and are thus a factor of urban decentralisation. This leads us to focus on the spatial effects of agri-environmental policies promoting amenities. The model characterises a suburban mixed land-use area where households and farmers share space. We provide theoretical evidence that agri-environmental policies are not adopted uniformly by farmers and that they impact on several city features. We highlight that the funding of an agri-environmental policy through household income taxation can modify urbanisation patterns. We also discuss its distributional aspects.
    Keywords: agricultural amenities; land development; agri-environmental policy; urban sprawl; leapfrog; monocentric model
    Date: 2012–10–10
  4. By: Hüschelrath, Kai; Müller, Kathrin
    Abstract: The paper estimates the effects of entry by low-cost carrier JetBlue Airways in long-haul domestic U.S. airline markets. For the period from 2000 to 2009, we find that non-stop fares were on average about 21 percent lower post-entry; however, the magnitude of the price effect depends on the pre-entry market structure. While entry into monopoly markets triggered an average price decrease of about 25 percent, the respective average price drop for entries into oligopoly markets lied at about 15 percent. Based on additional estimates of the price and income elasticities for long-haul domestic U.S. flights, we conclude that JetBlue's long-haul entries alone led to an increase in consumer welfare of about USD 661 million. --
    Keywords: airline industry,entry,low-cost carrier,consumer welfare effects
    JEL: L40 L93
    Date: 2012

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