| Abstract: |
The paper delves into the intricate relationship between economic growth,
tourism arrivals, and climate change, focusing specifically on the European
economy over the period 1990-2019 using panel data analysis. The empirical
framework examines the interplay between these variables and sheds light on
their implications for environmental sustainability and economic development.
The econometric analysis reveals several noteworthy findings. Firstly, the
equation assessing economic growth underscores the positive correlation
between tourist arrivals, energy consumption, carbon dioxide emissions,
openness to trade, and economic growth. These results align with the
prevailing literature, highlighting the multifaceted drivers of economic
expansion in the context of tourism and trade. However, the study diverges
from conventional wisdom by challenging the notion of a strictly positive
correlation between tourism and climate change. While previous research
predominantly suggests a positive association, our findings suggest an
alternative hypothesis, wherein tourist arrivals exhibit a negative
correlation with climate change indicators. This nuanced perspective
underscores the complex dynamics at play and emphasizes the need for further
investigation into the environmental implications of tourism. Furthermore, the
application of fixed effects and GMM-system techniques provides additional
insights into the determinants of carbon dioxide emissions. Income per capita
and energy consumption emerge as significant drivers of CO2 emissions,
highlighting the role of economic prosperity and energy consumption patterns
in shaping environmental outcomes. Interestingly, tourism arrivals and squared
income per capita demonstrate a negative correlation with CO2 emissions,
suggesting that higher levels of tourism and income per capita may mitigate
environmental pressures. Additionally, the analysis of tourism arrival
determinants reveals that income per capita, openness to trade, and energy
consumption exert a positive effect on tourism arrivals. These findings
underscore the role of economic prosperity, trade openness, and energy
infrastructure in driving tourist inflows, highlighting the interconnectedness
of economic and tourism dynamics. The paper contributes to the growing body of
literature on the nexus between economic growth, tourism, and climate change,
offering valuable insights for policymakers and stakeholders. By elucidating
the complex relationships between these variables, the study informs
evidence-based policy interventions aimed at promoting sustainable tourism
practices and mitigating the environmental impact of economic growth.
Ultimately, a holistic approach that balances economic development objectives
with environmental stewardship is essential for fostering long-term prosperity
and sustainability in the European economy and beyond. |