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

Sudharshan Reddy Paramati, Md Samsul Alam, Ching Fu Chen

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    101 Citations (Scopus)

    Abstract

    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.

    Original languageEnglish
    Pages (from-to)712-724
    Number of pages13
    JournalJournal of Travel Research
    Volume56
    Issue number6
    Early online date15 Jul 2017
    DOIs
    Publication statusPublished - Sep 2017

    Keywords

    • CO emissions
    • developed and developing economies
    • economic growth
    • tourism

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