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Is the Load Capacity Curve Hypothesis Valid for the Top Ten Tourism Destinations?

Author

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  • Ugur Korkut Pata

    (Department of Economics, Osmaniye Korkut Ata University, 80000 Osmaniye, Turkey)

  • Banu Tanriover

    (Department of Economics, Osmaniye Korkut Ata University, 80000 Osmaniye, Turkey)

Abstract

Environmental deformations and changes put countries under socioeconomic stress at the global level and are, therefore, an essential topic of discussion. In this context, this paper analyzes the impact of financial development, tourism, and economic growth on three different environmental indicators using second-generation panel data techniques for the top ten tourism destinations. This study tests whether there is a U-shaped relationship between income and the load capacity factor and an inverse U-shaped link between carbon emissions, ecological footprint and income for the period 2004–2018. Despite the environmental Kuznets curve (EKC) hypothesis, which is often analyzed in this context, this empirical analysis investigates a new one—that of the load capacity curve (LCC) hypothesis. The results of the study show that the LCC and EKC hypotheses are not valid. The long-run panel estimators also indicate that international tourist arrivals are a factor that improves environmental quality, while financial development reduces the load capacity factor. Based on the results, it is recommended to support eco-friendly tourism for sustainable development.

Suggested Citation

  • Ugur Korkut Pata & Banu Tanriover, 2023. "Is the Load Capacity Curve Hypothesis Valid for the Top Ten Tourism Destinations?," Sustainability, MDPI, vol. 15(2), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:960-:d:1025496
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    1. Yongming Huang & Muhammed Ashiq Villanthenkodath & Mohammad Haseeb, 2023. "The nexus between eco‐friendly technology and environmental degradation in India: Does the N or inverted N‐shape load capacity curve(LCC) hypothesis hold?," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 276-297, May.
    2. Andrew Adewale Alola & Oktay Özkan & Ojonugwa Usman, 2023. "Role of Non-Renewable Energy Efficiency and Renewable Energy in Driving Environmental Sustainability in India: Evidence from the Load Capacity Factor Hypothesis," Energies, MDPI, vol. 16(6), pages 1-16, March.

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