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Boom from green: The potential policy effects of China’s national forest city construction on tourism

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  • Tu, Bingqian
  • Yan, Ru
  • Dang, Jingqi

Abstract

Environmental policies are expected to increase destination appeal and shape visitor behaviors. However, their direct impact on tourism remains less explored. This study investigates the impact of China’s National Forest City Construction (NFCC) policy on tourism using city panel data from 2002 to 2019. Empirical findings from a staggered difference-in-differences (DID) specification reveal a significant 21.15 % increase in per capita tourist revenue and a 21.74 % rise in per capita tourist arrivals post-NFCC implementation. These gains stem from increased city reputation, enhanced ecological environment, and upgraded infrastructure and services, thus improving destination image and tourist experiences. Heterogeneous analyses underscore NFCC’s potential to narrow regional tourism economic disparities, and suggest that areas with limited green space face challenges in tapping into tourism consumption potential. We demonstrate how economic vitality and environmental protection can coexist in the tourism sector through well-designed environmental policies, providing valuable insights for integrating environmental protection into tourism management.

Suggested Citation

  • Tu, Bingqian & Yan, Ru & Dang, Jingqi, 2025. "Boom from green: The potential policy effects of China’s national forest city construction on tourism," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 811-830.
    • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:811-830
    DOI: 10.1016/j.eap.2025.06.034
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