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Does tourism increase CO2 emissions and health spending in Mexico? New evidence from nonlinear ARDL approach

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  • Yongxian Fan
  • Irfan Ullah
  • Alam Rehman
  • Arif Hussain
  • Muhammad Zeeshan

Abstract

This study investigates the nexus between tourism, CO2 emissions and health spending in Mexico. We applied a nonlinear ARDL approach for the empirical analysis for the time period 1996–2018. Mexico receives a large number of tourists each year, tourism improves foreign exchange earnings and contributes positively to the economic growth. However, tourist activities impose a serious environmental cost in terms of CO2 emissions which increase health spending. The empirical findings suggest that tourism leads to CO2 emissions which resultantly causes a high level of health spending in Mexico. Both short‐run and long‐run findings reported a significant positive association between tourism, CO2 emissions, and health expenditures. Therefore, the government needs legislation to reduce CO2 emissions, besides the use of renewable energy could also help to reduce the CO2 emissions and health expenditures in society. This study does not support to reduce the health expenditure, rather it suggests optimal utilization of the funds allocated to the health sector.

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  • Yongxian Fan & Irfan Ullah & Alam Rehman & Arif Hussain & Muhammad Zeeshan, 2022. "Does tourism increase CO2 emissions and health spending in Mexico? New evidence from nonlinear ARDL approach," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(1), pages 242-257, January.
    • Handle: RePEc:bla:ijhplm:v:37:y:2022:i:1:p:242-257
    DOI: 10.1002/hpm.3322
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    2. Zhifeng Zhang & Fariha Sami & Irfan Ullah & Sami Ullah Khan & Salahuddin Khan, 2024. "Analyzing the green marketing approaches and their impact on consumer behavior toward the environment in China: a logistic regression approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29453-29474, November.
    3. Laurine Chikodiri Nwosu & Abraham Ayobamiji Awosusi & Oktay Özkan & Dervis Kirikkaleli & Tomiwa Sunday Adebayo, 2025. "Projecting a long‐term healthcare expenditure in the United States: Do climate change, globalization, and technological innovation play a major role?," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 2248-2273, August.
    4. Ramón Antonio Aragón Mladosich & Rafael Arturo Muñoz-Marquez Trujillo & Juan Valente Hidalgo Contreras & Imelda Becerra-Roman, 2022. "Development of a Mexican Version of the Cycle-Tourist Motivation Instrument (CtMI)," Sustainability, MDPI, vol. 14(21), pages 1-11, October.
    5. Nepal, Rabindra & Yadav, Miklesh Prasad & Katoch, Rupinder & Gupta, Himani & Kumar, Atul, 2024. "Co-movement between carbon emissions and forex market: A tale of COVID-19 outbreak and Russia-Ukraine invasion," Resources Policy, Elsevier, vol. 90(C).

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