The spillover of tourism development on CO2 emissions: a spatial econometric analysis


Yan, Jiaqi and Song, Yang and Yu, Ziqi and Li, Tingting and Teo, Brian Sheng Xian (2022) The spillover of tourism development on CO2 emissions: a spatial econometric analysis. Environmental Science and Pollution Research. pp. 1-16. ISSN 0944-1344, 1614-7499

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Climate change and tourism’s interaction and vulnerability have been among the most hotly debated topics recently. In this context, the study focuses on how CO2 emissions, the primary cause of global warming and climate change, respond to changes in tourism development. In order to do so, the impact of tourism development on CO2 emissions in the most visited countries is investigated. A panel data from 2000 to 2017 for top 70 tourist countries are analysed using a spatial econometric method to investigate the spatial effect of tourism on environmental pollution. The direct, indirect, and overall impact of tourism on CO2 emissions are estimated using the most appropriate generalized nested spatial econometric (GNS) method. The findings reveal that tourism has a positive direct effect and a negative indirect effect; both are significant at the 1% level. The negative indirect effect of tourism is greater than its direct positive effect, implying an overall significantly negative impact. Further, the outcome of financial development and CO2 emissions have an inverted U-shaped and U-shaped relationship in direct and indirect impacts. Population density, trade openness, and economic growth significantly influence environmental pollution. In addition, education expenditure and infrastructure play a significant moderating role among tourism and environmental pollution. The results have important policy implications as they establish an inverted-U-shaped relationship among tourism and CO2 emissions and indicate that while a country’s emissions initially rise with the tourism industry’s growth, it begins declining after a limit.

Item Type: Article
Uncontrolled Keywords: Tourism development, Financial development, Economic growth
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Computing and Informatics (FCI)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 19 Jan 2022 08:16
Last Modified: 05 Jul 2022 04:47


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