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Do Tourism Activities and Urbanization Drive Material Consumption in the OECD Countries? A Quantile Regression Approach

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  • Taiwo Temitope Lasisi

    (School of Tourism and Hotel Management, Bahcesehir Cyprus University, Lefkoşa 99010, Turkey
    Department of Innovation and International Management, Southern Federal University, 344006 Rostov-on-Don, Russia)

  • Kayode Kolawole Eluwole

    (School of Tourism and Hotel Management, Bahcesehir Cyprus University, Lefkoşa 99010, Turkey)

  • Uju Violet Alola

    (Department of Tourism Guidance, Istanbul Gelisim University, Istanbul 34310, Turkey
    Department of Economics and Management, South Ural State University, 454080 Chelyabinsk, Russia)

  • Luigi Aldieri

    (Department of Economic and Statistical Sciences, University of Salerno, 84084 Fisciano, Italy)

  • Concetto Paolo Vinci

    (Department of Economic and Statistical Sciences, University of Salerno, 84084 Fisciano, Italy)

  • Andrew Adewale Alola

    (Department of Economics and Finance, Istanbul Gelisim University, Istanbul 34310, Turkey)

Abstract

The United Nations Sustainable Development Goals (UNSDGs) elaborately encompass a global goal for sustainable consumption and production (Goal 12: SDGs), thus providing potential drivers and/or pathways to attaining sustainable consumption. In view of this global goal, this study examined the role of real income per capita, urbanization and especially inbound tourism in domestic material consumption for the panel of OECD countries. The study is conducted for the period of 1995 to 2016 by employing the panel quantile approach. Interestingly, an inverted U-shaped relationship between outbound tourism and domestic material consumption is established across the quantiles, thus indicating that sustainable domestic consumption is achievable after a threshold of domestic material consumption is attained. In addition, achieving sustainable consumption through economic or income growth is a herculean task for the OECD countries because the current reality indicates that income growth triggers higher consumption of domestic materials. However, the results suggest that urbanization is a recipe for sustainable domestic consumption since there is a negative and significant relationship between the two parameters across the quantiles. Nevertheless, the study presents relevant policy for efficient material and resources utilization and that is suitable to drive the SDGs for 2030 and other country-specific sustainable ambitions.

Suggested Citation

  • Taiwo Temitope Lasisi & Kayode Kolawole Eluwole & Uju Violet Alola & Luigi Aldieri & Concetto Paolo Vinci & Andrew Adewale Alola, 2021. "Do Tourism Activities and Urbanization Drive Material Consumption in the OECD Countries? A Quantile Regression Approach," Sustainability, MDPI, vol. 13(14), pages 1-13, July.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:7742-:d:592473
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    Cited by:

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    4. Festus Victor Bekun & Toyo Amegnonna Marcel Dossou & Kayode Kolawole Eluwole & Taiwo Temitope Lasisi & Gizem Uzuner, 2023. "Tourism and the Mediterranean Experience Amidst Environmental Issues: Fresh Insights from Panel Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 325-331, September.
    5. Diriye, Abdishakur W. & Jama, Osman M. & Diriye, Jama Warsame & Abdi, Abdulhakim M., 2022. "Public preference for sustainable land use policies – Empirical results from multinomial logit model analysis," Land Use Policy, Elsevier, vol. 114(C).
    6. Magazzino, Cosimo & Alola, Andrew Adewale & Schneider, Nicolas, 2021. "The trilemma of innovation, logistics performance, and environmental quality in 25 topmost logistics countries: a quantile regression evidence," LSE Research Online Documents on Economics 117654, London School of Economics and Political Science, LSE Library.

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