The impact of tourism developments on CO2 emissions: An advanced panel data estimation

Summary/Abstract

Vulnerability and interaction between tourism and climate change are among the most important issues discussed recently. In this context, this study focuses primarily on how CO₂ emissions, the main source of global warming and climate change, react to tourism developments. To this end, the impact of tourism developments on CO₂ emissions in the most visited countries is examined from 1995 to 2014 by conducting the continuously updated fully modified (CUP-FM) and the continuously updated bias-corrected (CUP-BC) estimators. Empirical results indicate that tourism arrivals have an increasing effect on CO₂ emissions, while tourism receipts have a reducing effect on CO₂ emissions. Results also reveal a possible co-movement and causal relationship between tourism developments and CO₂ emissions in the long-run.