Abstract
The study examined the long-run and causal relationship between international tourism receipts (ITR), social distribution, FDI inflows, and carbon (CO2) emissions to verify the different alternative and plausible hypotheses, i.e., environmental Kuznets curve (EKC) hypothesis, “pollution haven” hypothesis (PHH), and “resource efficiency” (REF) hypothesis, in a panel of Group of Seven (G-7) countries for the period of 1995–2015. The study employed panel random effect (RE) regression and panel causality test for robust inferences. The results show that ITR and FDI inflows increase CO2 emissions to verify PHH while government education expenditures (GEE) decrease CO2 emissions to substantiate the REF hypothesis across countries. The results validate the inverted U-shaped EKC relationship between CO2 emissions and economic growth (EG) with the turning point of US$30,900. In addition, GEE increase ITR while healthcare expenditures (HEXP) decrease ITR, which partially supported the REF hypothesis in a panel of countries. The impact of income inequality (INEQ) on ITR is positive at current time period while at later stages INEQ declines ITR that supported an inverted U-shaped relationship between them. The causality estimates confirm the bidirectional relationship between ITR and EG, while there is unidirectional casualty running from (i) ITR, EG, FDI inflows, and GEE to CO2 emissions, (ii) FDI inflows to ITR, (iii) GEE to EG, (iv) EG to social expenditures, (v) income inequality to health expenditures, (vi) social expenditures (SEXP) to ITR, and (vii) INEQ to ITR. There is no causal relationship found between ITR and EG during the study time period. The findings endorse the need for efficient resource spending, sustainable tourism (STR), and rational income distribution to improve environmental sustainability agenda in a panel of G-7 countries.
Similar content being viewed by others
References
Alam MS, Paramati SR (2016) The impact of tourism on income inequality in developing economies: does Kuznets curve hypothesis exist? Ann Tour Res 61:111–126
Alhowaish AK (2016) Is tourism development a sustainable economic growth strategy in the long run? Evidence from GCC countries. Sustainability 8(7):605–620
Arslanturk Y, Balcilar M, Ozdemir ZA (2011) Time-varying linkages between tourism receipts and economic growth in a small open economy. Econ Model 28(1):664–671
Aslan A (2014) Tourism development and economic growth in the Mediterranean countries: evidence from panel granger causality tests. Curr Issue Tour 17(4):363–372
Aslan A (2015) The sustainability of tourism income on economic growth: does education matter? Qual Quant 49(5):2097–2106
Atilgan E, Kilic D, Ertugrul HM (2017) The dynamic relationship between health expenditure and economic growth: is the health-led growth hypothesis valid for Turkey? Eur J Health Econ 18(5):567–574
Atzori R, Fyall A, Miller G (2018) Tourist responses to climate change: potential impacts and adaptation in Florida’s coastal destinations. Tour Manag 69:12–22
Awan U (2019) Effects of buyer-supplier relationship on social performance improvement and innovation performance improvement. Int J Appl Manag Sci 11(1):21–35
Awan U, Kraslawski A, Huiskonen J (2018) Buyer-supplier relationship on social sustainability: moderation analysis of cultural intelligence. Cogent Bus Manag 5(1):1429346
Awan U, Sroufe R, Kraslawski A (2019) Creativity enables sustainable development: supplier engagement as a boundary condition for the positive effect on green innovation. J Clean Prod 226:172–185
Bagliani M, Bravo G, Dalmazzone S (2008) A consumption-based approach to environmental Kuznets curves using the ecological footprint indicator. Ecol Econ 65(3):650–661
Balli E, Sigeze C, Manga M, Birdir S, Birdir K (2019) The relationship between tourism, CO2 emissions and economic growth: a case of Mediterranean countries. Asia Pac J Tour Res 24(3):219–232
Becken S (2004) How tourists and tourism experts perceive climate change and carbon-offsetting schemes. J Sustain Tour 12(4):332–345
Becken S, Patterson M (2006) Measuring national carbon dioxide emissions from tourism as a key step towards achieving sustainable tourism. J Sustain Tour 14(4):323–338
Bella G (2018) Estimating the tourism induced environmental Kuznets curve in France. J Sustain Tour 26(12):2043–2052
Ben Jebli M, Hadhri W (2018) The dynamic causal links between CO2 emissions from transport, real GDP, energy use and international tourism. Int J Sust Dev World Ecol 25(6):568–577
Blancas FJ, Lozano-Oyola M, González M (2015) A European sustainable tourism labels proposal using a composite indicator. Environ Impact Assess Rev 54:39–54
Boca GD, Saraçlı S (2019) Environmental education and student’s perception, for sustainability. Sustainability 11(6):1553
Breusch TS, Pagan AR (1980) The Lagrange multiplier test and its applications to model specification in econometrics. Rev Econ Stud 47(1):239–253
Brida JG, Lanzilotta B, Lionetti S, Risso WA (2010) The tourism-led growth hypothesis for Uruguay. Tour Econ 16(3):765–771
Brilliant Maps (2015) Top 100 international tourist destination cities by country. Online available at: http://brilliantmaps.com/top-100-tourist-destinations/ (accessed on 13th September, 2016)
Camilleri MA, Camilleri AC (2020) The sustainable development goal on quality education. In: The Future of the UN Sustainable Development Goals. Springer, Cham, pp 261–277
Cheah CF, Abdul-Rahim AS (2018) Relationship between health care and tourism sectors to economic growth: the case of Malaysia, Singapore and Thailand. Pertanika J Soc Sci Hum 26(2):1203–1213
Damiani V, Losito B (2019) Civic and citizenship education in the European context: evidence from research and open issues. In Handbook of Research on Education for Participative Citizenship and Global Prosperity (pp 245-273). IGI Global
Demiröz DM, Ongan S (2005) The contribution of tourism to the long-run Turkish economic growth. Ekonomický Časopis 53(09):880–894
Deskins J, Seevers MT (2011) Are state expenditures to promote tourism effective? J Travel Res 50(2):154–170
Dibeh G, Fakih A, Marrouch W (2019) Tourism–growth nexus under duress: Lebanon during the Syrian crisis. Tour Econ 1354816619836338
Dinda S (2004) Environmental Kuznets curve hypothesis: a survey. Ecol Econ 49(4):431–455
Euromonitor International report (2014) Top 100 city destinations ranking – Published 2014. Online available at: http://blog.euromonitor.com/2014/01/euromonitor-internationals-top-city-destinations-ranking.html (accessed on 13th September 2016)
Eyuboglu S, Eyuboglu K (2019) Tourism development and economic growth: an asymmetric panel causality test. Curr Issue Tour:1–7
Eyuboglu K, Uzar U (2019) The impact of tourism on CO2 emission in Turkey. Curr Issue Tour 1–15
Fahimi A, Saint Akadiri S, Seraj M, Akadiri AC (2018) Testing the role of tourism and human capital development in economic growth. A panel causality study of micro states. Tour Manag Perspect 28:62–70
Font X, Higham J, Miller G, Pourfakhimi S (2019) Research engagement, impact and sustainable tourism. J Sustain Tour 27(1):1–11
Gao J, Xu W, Zhang L (2019) Tourism, economic growth, and tourism-induced EKC hypothesis: evidence from the Mediterranean region. Empir Econ:1–23
Gössling S (2000) Sustainable tourism development in developing countries: some aspects of energy use. J Sustain Tour 8(5):410–425
Gunduz L, Hatemi-J A (2005) Is the tourism-led growth hypothesis valid for Turkey? Appl Econ Lett 12(8):499–504
Hatemi-J A, Gupta R, Kasongo A, Mboweni T, Netshitenzhe N (2018) Does tourism cause growth asymmetrically in a panel of G-7 countries? A short note. Empirica 45(1):49–57
Higgins-Desbiolles F (2018) Sustainable tourism: sustaining tourism or something more? Tour Manag Perspect 25:157–160
Im KS, Pesaran MH, Shin Y (2003) Testing for unit roots in heterogeneous panels. J Econ 115:53–74
Incera AC, Fernández MF (2015) Tourism and income distribution: evidence from a developed regional economy. Tour Manag 48:11–20
Isik C, Dogru T, Turk ES (2018) A nexus of linear and non-linear relationships between tourism demand, renewable energy consumption, and economic growth: theory and evidence. Int J Tour Res 20(1):38–49
Kao C (1999) Spurious regression and residual-based tests for cointegration in panel data. J Econ 90:1–44
Katircioğlu ST (2010) International tourism, higher education and economic growth: the case of North Cyprus. World Econ 33(12):1955–1972
Katircioglu ST, Feridun M, Kilinc C (2014) Estimating tourism-induced energy consumption and CO2 emissions: the case of Cyprus. Renew Sust Energ Rev 29:634–640
Kim HJ, Chen MH, Jang S (2006) Tourism expansion and economic development: the case of Taiwan. Tour Manag 27(5):925–933
Kinyondo A, Pelizzo R (2015) Tourism, development and inequality: the case of Tanzania. Poverty Public Policy 7(1):64–79
Kumar S, Breuing R, Chahal R (2012) Globalization of health care delivery in the United States through medical tourism. J Health Commun 17(2):177–198
Kuo NW, Chen PH (2009) Quantifying energy use, carbon dioxide emission, and other environmental loads from island tourism based on a life cycle assessment approach. J Clean Prod 17(15):1324–1330
Lean HH, Tang CF (2010) Is the tourism-led growth hypothesis stable for Malaysia? A note. Int J Tour Res 12(4):375–378
Lee CG (2008) Tourism and economic growth: the case of Singapore. Reg Sect Econ Stud 8(1):89–98
Lee JW, Brahmasrene T (2013) Investigating the influence of tourism on economic growth and carbon emissions: evidence from panel analysis of the European Union. Tour Manag 38:69–76
Lee S, O’Leary JT (2008) Determinants of income inequality in US nonmetropolitan tourism-and recreation-dependent communities. J Travel Res 46(4):456–468
Levin A, Lin CF, Chu J (2002) Unit root in panel data: asymptotic and finite-sample properties. J Econ 108(1):1–24
Li H, Chen JL, Li G, Goh C (2016) Tourism and regional income inequality: evidence from China. Ann Tour Res 58:81–99
Liu Y, Kumail T, Ali W, Sadiq F (2019) The dynamic relationship between CO2 emission, international tourism and energy consumption in Pakistan: a cointegration approach. Tour Rev 74(4):761–779
Loh CPA (2014) Health tourism on the rise? Evidence from the balance of payments statistics. Eur J Health Econ 15(7):759–766
Lv Z (2019) Deepening or lessening? The effects of tourism on regional inequality. Tour Manag 72:23–26
Mahadevan R, Suardi S (2019) Panel evidence on the impact of tourism growth on poverty, poverty gap and income inequality. Curr Issue Tour 22(3):253–264
Mahadevan R, Amir H, Nugroho A (2017) Regional impacts of tourism-led growth on poverty and income inequality: a dynamic general equilibrium analysis for Indonesia. Tour Econ 23(3):614–631
Marcouiller DW, Xia X (2008) Distribution of income from tourism-sensitive employment. Tour Econ 14(3):545–565
Mbaiwa JE (2003) The socio-economic and environmental impacts of tourism development on the Okavango Delta, North-Western Botswana. J Arid Environ 54(2):447–467
Mitra SK (2019) Is tourism-led growth hypothesis still valid? Int J Tour Res. forthcoming issue
Murthy KV, Gambhir S (2018) Analyzing environmental Kuznets curve and pollution haven hypothesis in India in the context of domestic and global policy change. Australas Account Bus Finance J 12(2):134–156
Nassani AA, Aldakhil AM, Abro MMQ, Zaman K (2017) Environmental Kuznets curve among BRICS countries: spot lightening finance, transport, energy and growth factors. J Clean Prod 154:474–487
Nassani AA, Aldakhil AM, Abro MMQ, Zaman K (2018) Effective international tourism management: a strategic approach. Soc Indic Res 137(3):1201–1224
Nepal R, al Irsyad MI, Nepal SK (2019) Tourist arrivals, energy consumption and pollutant emissions in a developing economy–implications for sustainable tourism. Tour Manag 72:145–154
Neuts B (2019) Tourism and urban economic growth: a panel analysis of German cities. Tour Econ 1354816619833553
OECD (2014). Social expenditure update: social spending is falling in some countries, but in many others it remains at historically high levels. Insights from the OECD Social Expenditure database (SOCX), November 2014. Online available at: https://www.oecd.org/els/soc/OECD2014-Social-Expenditure-Update-Nov2014-8pages.pdf (accessed on 12th October, 2016)
Oh CO (2005) The contribution of tourism development to economic growth in the Korean economy. Tour Manag 26(1):39–44
Ozturk I, Ali A (2009) On the causality between tourism growth and economic growth: empirical evidence from Turkey. Transylvan Rev Admin Sci 25:73–81
Ozturk I, Al-Mulali U, Saboori B (2016) Investigating the environmental Kuznets curve hypothesis: the role of tourism and ecological footprint. Environ Sci Pollut Res 23(2):1916–1928
Pan SY, Gao M, Kim H, Shah KJ, Pei SL, Chiang PC (2018) Advances and challenges in sustainable tourism toward a green economy. Sci Total Environ 635:452–469
Paramati SR, Shahbaz M, Alam MS (2017) Does tourism degrade environmental quality? A comparative study of eastern and Western European Union. Transp Res Part D: Transp Environ 50:1–13
Pedroni P (1997) Panel cointegration, asymptotic and finite sample properties of pooled time series tests, with an application to the PPP hypothesis: new results. Indiana University, Working Paper in conomics, November, 1997
Pedroni P (1999) Fully modified OLS for heterogeneous cointegrated panels. Adv Econ 57:1361–1401
Pesaran MH (2004) General diagnostic tests for cross section dependence in panels. CESifo Working Paper Series No. 1229; IZA Discussion Paper No. 1240
Primayesa E, Widodo W, Sugiyanto FX (2019) The tourism-led growth hypothesis in Indonesia. E-review Tour Res 17(1):59–77
Puczko L (2010) Health, wellness and tourism: healthy tourists, healthy business. In Proceeding of the Travel and Tourism Research Association Europe 2010 Annual Conference, pp 1–3
Qureshi MI, Hassan MA, Hishan SS, Rasli AM, Zaman K (2017) Dynamic linkages between sustainable tourism, energy, health and wealth: evidence from top 80 international tourist destination cities in 37 countries. J Clean Prod 158:143–155
Qureshi MI, Elashkar EE, Shoukry AM, Aamir A, Mahmood NHN, Rasli AM, Zaman K (2019) Measuring the ecological footprint of inbound and outbound tourists: evidence from a panel of 35 countries. Clean Techn Environ Policy:1–19
Rasli AM, Qureshi MI, Isah-Chikaji A, Zaman K, Ahmad M (2018) New toxics, race to the bottom and revised environmental Kuznets curve: the case of local and global pollutants. Renew Sust Energ Rev 81:3120–3130
Saint Akadiri S, Lasisi TT, Uzuner G, Akadiri AC (2019) Examining the impact of globalization in the environmental Kuznets curve hypothesis: the case of tourist destination states. Environ Sci Pollut Res 26(12):12605–12615
Sarkodie SA, Strezov V (2018) Empirical study of the environmental Kuznets curve and environmental sustainability curve hypothesis for Australia, China, Ghana and USA. J Clean Prod 201:98–110
Sarkodie SA, Strezov V (2019) A review on environmental Kuznets curve hypothesis using bibliometric and meta-analysis. Sci Total Environ 649:128–145
Shaheen K, Zaman K, Batool R, Khurshid MA, Aamir A, Shoukry AM, Sharkawy MA, Aldeek F, Khader J, Gani S (2019) Dynamic linkages between tourism, energy, environment, and economic growth: evidence from top 10 tourism-induced countries. Environ Sci Pollut Res 26(30):31273–31283
Shen J, Wang S, Liu W, Chu J (2019) Does migration of pollution-intensive industries impact environmental efficiency? Evidence supporting “pollution haven hypothesis”. J Environ Manag 242:142–152
Solarin SA (2018) Does tourism-led growth hypothesis exist in Mauritius? Evidence from disaggregated tourism markets. Curr Issue Tour 21(9):964–969
Stern DI (2004) The rise and fall of the environmental Kuznets curve. World Dev 32(8):1419–1439
Stern DI (2018) The environmental Kuznets curve. In Companion to Environmental Studies (Vol. 49, No. 54, pp. 49-54). ROUTLEDGE in association with GSE Research
Stynes DJ (1998) Economic impacts of tourism. Online available at: https://msu.edu/course/prr/840/econimpact/pdf/ecimpvol1.pdf (accessed on 12th October, 2016)
Sun YY (2016) Decomposition of tourism greenhouse gas emissions: revealing the dynamics between tourism economic growth, technological efficiency, and carbon emissions. Tour Manag 55:326–336
Tang CF (2011) Is the tourism-led growth hypothesis valid for Malaysia? A view from disaggregated tourism markets. Int J Tour Res 13(1):97–101
Tang CF, Abosedra S (2014) Small sample evidence on the tourism-led growth hypothesis in Lebanon. Curr Issue Tour 17(3):234–246
Tugcu CT (2014) Tourism and economic growth nexus revisited: a panel causality analysis for the case of the Mediterranean region. Tour Manag 42:207–212
Uçak H (2016) The relationship between the growth in the health sector and inbound health tourism: the case of Turkey. SpringerPlus 5(1):1685–1694
Van Dyk A, Tkaczynski A, Slabbert E (2019) Repeat tourism, destination image and behavioural intentions: implications for sustainable development in South Africa. Tour Recreat Res 44(3):392–398
Verhoeven M, Gunnarsson V, Carcillo S (2007) Education and health in G7 countries: achieving better outcomes with less spending. IMF working paper series WP/07/263. Online available at: https://www.imf.org/external/pubs/ft/wp/2007/wp07263.pdf (accessed on 12th October, 2016)
Wong JD (1996) The impact of tourism on local government expenditures. Growth Chang 27(3):313–326
World Bank (2018) World development indicator. World Bank, Washington, D.C.
World Economic Forum (2016) Country highlights. Online available at: http://reports.weforum.org/global-competitiveness-report-2015-2016/country-highlights/ (accessed on 12th October, 2016)
World Travel and Tourism Council (2016). The economic impact of travel & tourism: 2016 annual update – summary, London, UK
Yazdi SK (2019) Structural breaks, international tourism development and economic growth. Econ Res-Ekonomska Istraživanja 32(1):1765–1776
Zaman K, Shahbaz M, Loganathan N, Raza SA (2016) Tourism development, energy consumption and environmental Kuznets curve: trivariate analysis in the panel of developed and developing countries. Tour Manag 54:275–283
Zaman K, Moemen MAE, Islam T (2017) Dynamic linkages between tourism transportation expenditures, carbon dioxide emission, energy consumption and growth factors: evidence from the transition economies. Curr Issue Tour 20(16):1720–1735
Zhang Y, Chen X, Wu Y, Shuai C, Shen L (2019) The environmental Kuznets curve of CO2 emissions in the manufacturing and construction industries: a global empirical analysis. Environ Impact Assess Rev 79:106303
Zuo B, Huang S (2018) Revisiting the tourism-led economic growth hypothesis: the case of China. J Travel Res 57(2):151–163
Acknowledgements
Researchers Supporting Project number (RSP-2019/87), King Saud University, Riyadh, Saudi Arabia.
Author information
Authors and Affiliations
Corresponding author
Additional information
Responsible editor: Nicholas Apergis
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Anser, M.K., Yousaf, Z., Nassani, A.A. et al. International tourism, social distribution, and environmental Kuznets curve: evidence from a panel of G-7 countries. Environ Sci Pollut Res 27, 2707–2720 (2020). https://doi.org/10.1007/s11356-019-07196-2
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-019-07196-2