Tourism Impact on Air Pollution in Developed and Developing Countries

Author

Faculty of Economics and Administrative Sciences, Lorestan University, Khoram Abad, Iran

10.22059/ier.2020.74478

Abstract

T





he main purpose of this paper is to investigate and compare the impact of tourism on air pollution in selected developed and developing countries during the period of 1995-2014. To this end, at first, the model was designed based on the Environmental Kuznets Curve (EKC) assumptions and with the presence of the major influencing factors on air pollution along with the international tourism variable. Then, the long-run relationship between these variables was estimated by the Continuously-updated and Fully-Modified (CUP-FM) method, considering the existence of a cross-sectional dependence between the model variables in both groups of studied countries. The results of this study indicate the positive impact of international tourism on air pollution in selected developing countries; while the expansion of international tourism reduces air pollution in studied developed countries.
 

Keywords


Aghaei, M., Ghanbari, A., Agheli, L., & Sadeghi, H. (2012). Investigating the Relationship between Energy Consumption and Economic Growth in Iran's Provinces Using Cointegration and Multivariate Panel Error Correction Model. Journal of Economics and Modeling, 9, 148-185.

 

Asghari, M., Yousefi Tudashaki, Sh., & Arbabian, Sh. (2012). The Impact of Tourism on Environmental Quality. Journal of Economic Development Research, 7, 1-28.

 

Azam, M., Alam, M. M., & Hafeez, M. H. (2018). Effect of Tourism on Environmental Pollution: Further Evidence from Malaysia, Singapore, and Thailand. Journal of Cleaner Production, 19, 330-338.

 

Bai, J., Kao, C., & Ng, S. (2009). Panel Cointegration with Global Stochastic Trends. Journal of Econometrics, 149, 82-99.

 

Breusch, T. S., & Pagan, A. R. (1980). The Lagrange Multiplier Test and its Application to Model Specifications in Econometrics. The Review of Economic Studies, 47, 239–253.

 

Chand Prasad, B., & Asafu-Adjaye, J. (2003). Trade Liberalization and Environment in Pacific Island Countries (FICs): Is It a Case of “Two Gains for one”? International Journal of Social Economics, 30, 1288 – 1305.

 

Chang, Y. (2004). Bootstrap Unit Root Tests in Panels with Cross-sectional Dependency. Journal of Econometrics, 120, 263-293.

 

Cole, M. A., Rayner, A. J., & Bates, J. M. (1997). The Environmental Kuznets Curve: An Empirical Analysis. Environmental and Development Economics, 2, 401-416.

 

Dean, M. (2002). Does Trade Liberalization Harm the Environment? A New Test. the Canadian Journal of Economics, 35(4), 819-842.

 

Dogan, E., Seker, F., & Bulbul, S. (2017). Investigating the Impacts of Energy Consumption, Real GDP, Tourism and Trade on CO2 Emissions by Accounting for Cross-Sectional Dependence: A Panel Study of OECD Countries. Current Issues in Tourism, 20(16), 1701-1719.

 

Farhani, S., Chaibi, A., & Rault, C. (2014). CO2 Emissions, Output, Energy Consumption, and Trade in Tunisia. Economic Modeling, 38, 426-434.

 

Gupta, M. R., & Dutta, P. B. (2018). Tourism Development, Environmental Pollution and Economic Growth: A Theoretical Analysis. The Journal of International Trade & Economic Development, 27(2), 125-144.

 

Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for Unit Roots in Heterogeneous Panels. Journal of Econometrics, 115, 53-74.

 

Kao, C. (1999). Spurious Regression and Residual-Based Tests for Cointegration in Panel Data. Journal of Econometrics, 90, 1-44.

 

Kasman, A., & Duman, Y.S. (2015). CO2 Emissions, Economic Growth, Energy Consumption, Trade and Urbanization in New EU Member and Candidate Countries: A Panel Data Analysis. Economic Modelling, 44, 97-103.

 

Katircioğlu, S. T. (2014a). Testing the Tourism-Induced EKC Hypothesis: The Case of Singapore. Economic Modelling, 41, 383–391.

 

---------- (2014b). International Tourism, Energy Consumption, and Environmental Pollution: The Case of Turkey. Renewable and Sustainable Energy Reviews, 36, 180–187.

 

Lee, J. W., & Brahmasrene, T. (2013). Investigating the Influence of Tourism on Economic Growth and Carbon Emissions: Evidence from Panel Analysis of the European Union. Tourism Management, 38, 69-76.

 

Levin, A., Lin, C. F., & Chu, C. J. (2002). Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties. Journal of Econometrics, 108, 1-24.

 

Marin. D. (1992). Is the Export-Led Hypothesis Valid for Industrialized Countries? Review of Economics and Statistics, 74, 678- 688.

 

Mubarak, A., & Mohammadlou, N. (2009). The Impact of Trade Liberalization on Greenhouse Gases Emissions: An Empirical Test of Pollution Haven Hypotheses and Environmental Kuznets Curve. Journal of Planning and Budget, 14, 31-58.

 

Pajouyan, J., & Morad Hasel, N. (2007). The Effect of Economic Growth on Air Pollution. Quarterly Journal of Economic Research, 4, 141-160.

 

Pedroni, P. (2004). Panel Cointegration, Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory, 3, 597-625.

 

Pesaran, M. H. (2007). A Simple Panel Unit Root Test in Presence of Cross Section Dependence. Journal of Applied Econometrics, 22, 265–312.

 

---------- (2004). General Diagnostic Tests for Cross Section Dependence in Panels. CWPE 0435 Working Paper, Retrieved from https://www.repository.cam.ac.uk/bitstream/handle/1810/446/cwpe0435.pdf.

 

Phillips, P. C. B., & Hansen, B. E. (1990). Statistical Inference in Instrumental Variables Regression with I(1) Processes. Review of Economic Studies, 57, 99-125.

 

Saboori, B., Sulaiman, J., & Mohd, S., (2012). Economic Growth and CO2 Emissions in Malaysia: A Cointegration Analysis of the Environmental Kuznets Curve. Energy Policy, 51, 184–191.

 

Salimifar, M., & Dehnavi, J. (2009). Comparison of Kuznets Environmental Curve in OECD and Developing Countries: Panel Based Analysis. Science and Development Magazine, 29, 181-200.

 

Shakouri, B., Yazdi, S. K., & Ghorchebigi, E. (2017). Does Tourism Development Promote CO2 Emission? Anatolia: An International Journal of Tourism and Hospitality Research, 28(3), 444-452.

 

Strutt, A., Anna, C., Anderson, K., & Kym, A. (2000). Will Trade Liberalization Harm the Environment? The Case of Indonesia to 2020. Environmental and Resource Economics, 17(3), 203-232.

 

Theobald, W. F. (2001). Global Tourism (2nd Ed.). Oxford: Oxford Journals.

Vita, G., Katircioglu, S., Altinay, L., Fethi, S., & Mercan, M. (2015). Revisiting the Environmental Kuznets Curve Hypothesis in a Tourism Development Context. Environmental Science and Pollution Research, 22(21), 1–12.

 

Westerlund, J. (2007). Testing for Error Correction in Panel Data. Oxford Bulletin of Economics and Statistics, 69(6), 709–748.

 

Yavari, K., Rezagholizadeh, M., Aghaei, M., & Mostafavi, S.M.H. (2010). The Effect of Tourism on Economic Growth: The Case of OIC Member Countries. Journal of Economic Research, 45(2), 219-241.

 

Zhang, L., & Gao, J. (2016). Exploring the effects of International Tourism on China's Economic Growth, Energy Consumption, and Environmental Pollution: Evidence from a Regional Panel Analysis. Renewable and Sustainable Energy Reviews, 53, 225–234.