The Effects of Tourism on Economic Growth and CO2 Emissions: A Comparison between Developed and Developing Economies

By S. Paramati, Md. Mahmudul Alam, Ching-Fu Chen. 2017

471 citations recorded by the source corpus.

This study empirically examines the dynamic relationships among tourism, economic growth, and CO2 emissions and compares the effects of tourism on economic growth and CO2 emissions between developed and developing economies. By employing robust panel econometric techniques, the results show that tourism has significant positive impacts on economic growth for both developed and developing economies, supporting the prevailing hypothesis of tourism-led economic growth. The results also reveal that the impact of tourism on CO2 emissions is reducing much faster in developed economies than in developing economies, providing evidence of the environmental Kuznets curve (EKC) hypothesis on the link between tourism growth and CO2 emissions. Our findings demonstrate the importance of the classification of countries by economic development level to obtain a deeper understanding of relationships among tourism, economic growth, and CO2 emissions. Policy implications are provided and discussed.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/b57831728640f86691b47c015770abd8ebb1f920

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Citations in the corpus

Energy consumption, tourism development, and environmental degradation in Sri Lanka (2017, methodology): “Recently, Paramati et al. (2016) observed a long-run relationship between tourism growth and carbon dioxide.”
The impact of tourism on CO2 emission in Turkey (2020, background): “Recently, however, researchers have begun to analyse the impact of tourism on CO2 emissions (Katircioglu, 2014a; Paramati et al., 2017; Sharif et al., 2017).”
Tourism, economic growth, energy consumption, and CO2 emissions in China (2020, background): “…between these two variables has been substantiated by many studies (e.g. Akadiri et al., 2019; Alam and Paramati, 2017; Dogan and Aslan, 2017; Paramati et al., 2018; Raza et al., 2017; Sharif et al., 2017; Sherafatian-Jahrom et al., 2017), there are still differences in how tourism affects…”
The effect of tourism investment on tourism development and CO2 emissions: empirical evidence from the EU nations (2018, background): “Finally, comparing between developed and developing economies across the world, Paramati, Alam, and Chen (2016) empirically examine the effect of tourism on CO2 emissions.”
Dynamic relationship between tourism, economic growth, and environmental quality (2018, background): “Few studies have investigated the ways in which tourism affects the environment indirectly being a key indicator of energy consumption leading to global climate change (Katircioǧ lu, 2014; Katircioglu, Feridun, & Kilinc, 2014; Paramati et al., 2017; Sherafatian-Jahromi, Othman, Law, & Ismail, 2016).”
The impact of tourism on income inequality in developing economies: Does Kuznets curve hypothesis exist? (2016, unknown): “2 Several authors (e.g. Bhattacharya et al., 2016; Paramati et al., 2016; Alam et al., 2015) argue the significance of cross-sectional dependence in the analysis.”
Effect of tourism on environmental pollution: Further evidence from Malaysia, Singapore and Thailand (2018, unknown): “More recently, Alam and Paramati (2017) examined the role of tourism investment on tourism development and CO2 emissions in panel of 10 major tourism countries (Barbados, Bahamas, Belize, Cabo Verde, Fiji, Maldives, Malta, Seychelles, St. Lucia and Vanuatu) during 1995-2013.”
Revisiting the role of tourism and globalization in environmental degradation in China: Fresh insights from the quantile ARDL approach (2020, background): “With the increase in global climatic shift and energy security issues, tourism is an important social and economic industry, and many scholars have explored the impact of tourism on environmental emissions from carbon (Gössling 2002; Dwyer et al. 2010; Paramati et al. 2017; Mishra et al., 2019b).”