An Evaluation of the Tourism-Induced Environmental Kuznets Curve (T-EKC) Hypothesis: Evidence from G7 Countries

By C. Işık, Munir Ahmad, Ugur Korkut Pata, Serdar Ongan, Magdalena Radulescu, Festus Fatai Adedoyin, Engin Bayraktaroğlu, Sezi Aydın, Ayşe Ongan. 2020

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This paper analyzes the legitimacy of the Environmental Kuznets Curve (EKC) hypothesis for a group of seven (G7) countries over the period 1995–2015. In addition to testing the EKC speculation, the authors also would like to understand the ways in which increases in renewable energy consumption and the international tourism receipt affect the CO 2 emissions in G7 countries, because the energy and tourism sectors may have considerable direct impacts on CO 2 emissions. In this investigation, a panel bootstrap cointegration test and an augmented mean group (AMG) estimator were applied. The empirical findings indicate that the tourism-induced EKC hypothesis is valid only for France. Additionally, it was detected that a rise in renewable energy consumption has a negative (reduction) impact on CO 2 emissions in France, Italy, the UK, and the US. However, an increase in the receipt of international touristm has a positive (additional) impact on Italy’s CO2 emissions. Hence, this country’s decision-makers should re-review their tourism policy to adopt a renewable-inclusive one for sustainable tourism and the environment.

Subfields: Economics and Econometrics, Marketing

View Paper: https://www.semanticscholar.org/paper/0bdd062eb3c28a7ea3bd601f468144838de94317