IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v26y2024i6d10.1007_s10668-023-03239-4.html
   My bibliography  Save this article

Does environmental policy stringency discourage inbound tourism in the G7 countries? Evidence from panel quantile regression

Author

Listed:
  • Farah Durani

    (University of Business and Technology)

  • Phan The Cong

    (Thuongmai University)

  • Qasim Raza Syed

    (Ilma University
    Universiti Sains Malaysia)

  • Nicholas Apergis

    (University of Piraeus)

Abstract

The goal of this paper is to discern whether environmental policy stringency discourages inbound tourism in the G7 countries. The analysis is based on second-generation panel data methods in consort with the panel quantile regression approach. The findings document that environmental policy stringency plunges inbound tourism across all quantiles. Moreover, the impact of environmental policy stringency is relatively strong at higher quantiles compared to middle and lower quantiles, while the analysis reports that per capita global GDP escalates inbound tourism at all quantiles, whereas both inflation and the real effective exchange rate plunge inbound tourism. Finally, this study proposes certain policy recommendations to promote tourism. The results also survive certain robustness tests. They also imply that the countries under consideration need to adopt special measures to promote tourism, apply strict environmental control measures, while tourists should be given incentives to offset the detrimental impact of environmental regulations. Finally, the tourism-related firms should be given higher emissions permits through an emissions trading scheme, which lowers the cost of tourism, as well as tax exemptions on their imports. Graphical abstract

Suggested Citation

  • Farah Durani & Phan The Cong & Qasim Raza Syed & Nicholas Apergis, 2024. "Does environmental policy stringency discourage inbound tourism in the G7 countries? Evidence from panel quantile regression," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(6), pages 15109-15123, June.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:6:d:10.1007_s10668-023-03239-4
    DOI: 10.1007/s10668-023-03239-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-023-03239-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-023-03239-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Seyed Alireza Athari & Uju Violet Alola & Matina Ghasemi & Adewale Andrew Alola, 2021. "The (Un)sticky role of exchange and inflation rate in tourism development: insight from the low and high political risk destinations," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(12), pages 1670-1685, June.
    2. Mayor, Karen & Tol, Richard S.J., 2007. "The impact of the UK aviation tax on carbon dioxide emissions and visitor numbers," Transport Policy, Elsevier, vol. 14(6), pages 507-513, November.
    3. Cem Ișik & Munir Ahmad & Uğur Korkut Pata & Serdar Ongan & Magdalena Radulescu & Festus Fatai Adedoyin & Engin Bayraktaroğlu & Sezi Aydın & Ayse Ongan, 2020. "An Evaluation of the Tourism-Induced Environmental Kuznets Curve (T-EKC) Hypothesis: Evidence from G7 Countries," Sustainability, MDPI, vol. 12(21), pages 1-11, November.
    4. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    5. Sam Meng & Tien Pham, 2017. "The impact of the Australian carbon tax on the tourism industry," Tourism Economics, , vol. 23(3), pages 506-522, May.
    6. Richard S.J. Tol, 2006. "The Impact of a Carbon Tax on International Tourism," Papers WP177, Economic and Social Research Institute (ESRI).
    7. Tugcu, Can Tansel, 2014. "Tourism and economic growth nexus revisited: A panel causality analysis for the case of the Mediterranean Region," Tourism Management, Elsevier, vol. 42(C), pages 207-212.
    8. Christian Hansen & Susanne Jensen, 1996. "The Impact of Tourism on Employment in Denmark: Different Definitions, Different Results," Tourism Economics, , vol. 2(4), pages 283-302, December.
    9. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Paunescu, 2021. "Harmonization of Green Motives and Green Business Strategies towards Sustainable Development of Hospitality and Tourism Industry: Green Environmental Policies," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    10. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    11. Zhang, Jiekuan & Zhang, Yan, 2018. "Carbon tax, tourism CO2 emissions and economic welfare," Annals of Tourism Research, Elsevier, vol. 69(C), pages 18-30.
    12. Hira Arain & Liyan Han & Arshian Sharif & Muhammad Saeed Meo, 2020. "Investigating the effect of inbound tourism on FDI: The importance of quantile estimations," Tourism Economics, , vol. 26(4), pages 682-703, June.
    13. Ahmed Muhamad Omer & Mehmet Yeşiltaş, 2020. "“Modeling the impact of wars and terrorism on tourism demand in Kurdistan region of Iraq”," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 19(3), pages 301-322, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boto-García, David & Albert, Juan Francisco & Gómez-Fernández, Nerea, 2024. "Carbon price shocks and tourism demand," Annals of Tourism Research, Elsevier, vol. 108(C).
    2. Feng, Yanchao & Sabir, Saeed Ahmad & Quddus, Abdul & Wang, Jianxin & Abbas, Shujaat, 2024. "Do the grey clouds of geopolitical risk and political globalization exacerbate environmental degradation? Evidence from resource-rich countries," Resources Policy, Elsevier, vol. 89(C).
    3. Siamand Hesami & Bezhan Rustamov & Husam Rjoub & Wing-Keung Wong, 2020. "Implications of Oil Price Fluctuations for Tourism Receipts: The Case of Oil Exporting Countries," Energies, MDPI, vol. 13(17), pages 1-17, August.
    4. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.
    5. Shan, Shan & Ahmad, Munir & Tan, Zhixiong & Adebayo, Tomiwa Sunday & Man Li, Rita Yi & Kirikkaleli, Dervis, 2021. "The role of energy prices and non-linear fiscal decentralization in limiting carbon emissions: Tracking environmental sustainability," Energy, Elsevier, vol. 234(C).
    6. Wang, Xuhui & Xi, Haonan, 2023. "Carbon mitigation policy and international tourism. Does the European Union Emissions Trading System hit international tourism from member states?," Annals of Tourism Research, Elsevier, vol. 103(C).
    7. Jing Gao & Wen Xu & Lei Zhang, 2021. "Tourism, economic growth, and tourism-induced EKC hypothesis: evidence from the Mediterranean region," Empirical Economics, Springer, vol. 60(3), pages 1507-1529, March.
    8. Tolulope Osinubi & Ajayi Adedoyin & Osinubi Olufemi & Folorunsho Ajide, 2023. "Does Tourism Affect Sustainable Development in MINT Countries?," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(1), pages 72-92, January.
    9. Melina Dritsaki & Chaido Dritsaki, 2024. "The Relationship Between Health Expenditure, CO2 Emissions, and Economic Growth in G7: Evidence from Heterogeneous Panel Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4886-4911, March.
    10. Wenjing Zhang & Hengzhou Xu, 2017. "Exploring the causal relationship between carbon emissions and land urbanization quality in China using a panel data analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(4), pages 1445-1462, August.
    11. Kizito Uyi Ehigiamusoe, 2021. "The nexus between tourism, financial development, and economic growth: Evidence from African countries," African Development Review, African Development Bank, vol. 33(2), pages 382-396, June.
    12. Balsalobre-Lorente, Daniel & Abbas, Jaffar & He, Chang & Pilař, Ladislav & Shah, Syed Ale Raza, 2023. "Tourism, urbanization and natural resources rents matter for environmental sustainability: The leading role of AI and ICT on sustainable development goals in the digital era," Resources Policy, Elsevier, vol. 82(C).
    13. Zhang, Jiekuan & Zhang, Yan, 2018. "Carbon tax, tourism CO2 emissions and economic welfare," Annals of Tourism Research, Elsevier, vol. 69(C), pages 18-30.
    14. Nicholas M. Odhiambo & Talknice Saungweme, "undated". "Does International Tourism Spur International Trade In Ssa Countries? A Dynamic Panel Data Analysis," Working Papers AESRI07, African Economic and Social Research Institute (AESRI).
    15. Mehmet Balcilar & Daberechi Chikezie Ekwueme & Hakki Ciftci, 2023. "Assessing the Effects of Natural Resource Extraction on Carbon Emissions and Energy Consumption in Sub-Saharan Africa: A STIRPAT Model Approach," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    16. Ehigiamusoe, Kizito Uyi & Lean, Hooi Hooi & Smyth, Russell, 2020. "The moderating role of energy consumption in the carbon emissions-income nexus in middle-income countries," Applied Energy, Elsevier, vol. 261(C).
    17. Muhammad Shahbaz & Syed Jawad Hussain Shahzad & Mantu Kumar Mahalik & Perry Sadorsky, 2018. "How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1479-1494, March.
    18. Saadaoui, Jamel, 2012. "Global Imbalances: Should We Use Fundamental Equilibrium Exchange Rates?," MPRA Paper 42554, University Library of Munich, Germany.
    19. Dierk Herzer, 2024. "A panel data analysis of the long-run effect of environmental taxes on R&D expenditures at the macro-level," Economics Bulletin, AccessEcon, vol. 44(3), pages 1169-1180.
    20. Polemis, Michael & Tselekounis, Markos, 2019. "Does deregulation drive innovation intensity? Lessons learned from the OECD telecommunications sector," MPRA Paper 92770, University Library of Munich, Germany.

    More about this item

    Keywords

    Environmental policy stringency; Inbound tourism flows; G7 countries;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Z30 - Other Special Topics - - Tourism Economics - - - General
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:26:y:2024:i:6:d:10.1007_s10668-023-03239-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.