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Dynamic nexus among tourism, corruption, democracy and environmental degradation: a panel data investigation

Author

Listed:
  • Muhammad Haseeb

    (Taylor’s Business School (TBS), Taylor’s University Lakeside Campus)

  • Muhammad Azam

    (Abdul Wali Khan University Mardan
    College of Business, Universiti Utara Malaysia)

Abstract

In the current era, a widespread threat faced by many countries is global warming and climate change due to excessive carbon emissions from transportation and other types of environmentally hazardous activities. As a result, on the one hand while several countries are not able to utilize their resources fully, on the other hand, they are striving to maintain a clean and green environment for sustainable development. A lot of attention is now being paid by policy makers and national governments to address to the threats of global warming and climate changes. This study makes an empirical investigation of the relationships among corruption, democracy, tourism and environmental degradation, with carbon dioxide (CO2) emissions acting as a hazard to environment in selected low-, lower-middle-, upper-middle- and high-income countries. Aggregate and disaggregate panel data were used for the period of 1995–2015, employing Fully Modified Ordinary Least Squares (FMOLS) method of panel and Dumitrescu Hurlin Panel Causality Tests. The findings suggest that endemic corruption and tourism are key contributors to CO2 emissions. The study has also revealed that the impact of CO2 emissions is more in low-income countries than in high-income countries since findings indicate that democracy proves helpful in high-income countries to reduce CO2 emissions. The Granger causality test showed bidirectional causality between democracy and tourism variables and between corruption and CO2 emissions variables. The Granger causality results also reveal a unidirectional causality running from tourism to CO2 emissions and from tourism to corruption.

Suggested Citation

  • Muhammad Haseeb & Muhammad Azam, 2021. "Dynamic nexus among tourism, corruption, democracy and environmental degradation: a panel data investigation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5557-5575, April.
  • Handle: RePEc:spr:endesu:v:23:y:2021:i:4:d:10.1007_s10668-020-00832-9
    DOI: 10.1007/s10668-020-00832-9
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    Cited by:

    1. Acheampong, Alex O. & Opoku, Eric Evans Osei & Dzator, Janet, 2022. "Does democracy really improve environmental quality? Empirical contribution to the environmental politics debate," Energy Economics, Elsevier, vol. 109(C).
    2. Kaddachi, Hayet & Ben Zina, Naceur, 2022. "The impact of corruption on economic growth in Tunisia: application of ARDL approach," MPRA Paper 114869, University Library of Munich, Germany, revised Nov 2022.
    3. Abdul Rauf & Ilhan Ozturk & Fayyaz Ahmad & Khurram Shehzad & Abbas Ali Chandiao & Muhammad Irfan & Saira Abid & Li Jinkai, 2021. "Do Tourism Development, Energy Consumption and Transportation Demolish Sustainable Environments? Evidence from Chinese Provinces," Sustainability, MDPI, vol. 13(22), pages 1-23, November.
    4. Kaddachi, Hayet & Ben Zina, Naceur, 1998. "The impact of corruption on economic growth in Tunisia: application of ARDL approach," MPRA Paper 114867, University Library of Munich, Germany, revised 2018.

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