Do Economic Growth and Environment Quality Contribute to Tourism Development in Eu Countries? A Panel Data Analysis

Abstract

The positive impact of the tourism industry on economic growth, revenues, infrastructure, employment, social inclusion and poverty reduction, although widely recognised, has been lately weighted against the appearance and exacerbation of several problems, such as: environmental footprint, increase of income inequality, cost increases related to solid waste collection, energy consumption, increased global CO2 emissions. On the other hand, the tourism sector is not just an active economic, societal, or environmental change agent; in turn, the tourism sector supports or is highly influenced by various factors, such as climate change, economic, political, or social factors. More recently, this industry has been highly impacted by the pandemic, technological developments and cultural trends. In this article we examined both the short and long-run relationship between tourism development and economic growth, CO2 emissions and energy consumption in European Union member states (EU27), by using the Principal Component Analysis (PCA) technique and autoregressive distributed lag (ARDL) model for panel data. The findings suggest that economic growth and energy consumption have a statistically significant impact on the tourism index both in the short and long-run, whereas CO2 emissions only have a significant impact upon the tourism index on the long run.

Tourism at the Crossroads between Well-Being, Public Health and the Environment: Panel Data Evidence from the European Union

“…We chose EU27 data because most European Union countries have a long tradition of environmental and healthcare policies, the tourism sector is likewise well-developed and representative and statistical data are easily accessible, harmonized across member states and available for the entire analyzed period. In particular, the present paper builds on our previous research on the relationship between environmental quality and tourism development, and between economic growth, pollution and health in EU countries [64][65][66].…”

An Empirical Investigation between FDI, Tourism, and Trade on CO2 Emission in Asia: Testing Environmental Kuznet Curve and Pollution Haven Hypothesis

“…A good number of studies already examines the relationship between tourism and CO 2 , mostly using panel data analysis namely, EU Countries (Ahmad et al, 2019;Arbulú et al, 2015;Badulescu et al, 2021;Dritsaki and Dritsaki, 2014;Paramati et al, 2017), Asia (Ahmad et al, 2019), ASEAN 5 (Azam et al, 2020;Tang and Tan, 2015), Gulf Cooperation Council (Alhowaish, 2016), Mediterranean countries (Dritsaki and Dritsaki, 2014), Muslim Countries (Muhammad et al, 2021), and OECD (Liddle, 2012). While the other research studies focuses on countries level of data for example Italy (Ercolano et al, 2018), Pakistan (Khan et al, 2020;Khan and Ahmad, 2021;Liu et al, 2019), China (Tang et al, 2014;Udemba, 2019), Turkey (Koçak et al, 2020), Cyprus (Katircioglu et al, 2014), Spain (Mateu-Sbert et al, 2013, Switzerland (Jaligot and Chenal, 2018).…”

Economic Growth Determinants in New and Old Eu Countries With Focus on Construction

“…Recent studies on the EU sample (Gardiner & Hajek, 2020;Dogan & Aslan, 2017) demonstrated that CO 2 emissions affect GDP in both the old and new EU countries with the negative relationship confirmed in the old EU countries. Interestingly, Badulescu et al (2021) examined the nexus between tourism, GDP growth and CO 2 emissions in 27 EU member states for the 1995-2016 period. They noted the negative impact of GDP growth and CO 2 emissions on tourism development.…”