Impact of Tourism and Economic Growth on Air Pollution in Developing Countries

Abstract

Tourism development has frequently been regarded as a growth pillar in recent times, owing to its significant contribution to socioeconomic development and the expansion of tourism-led economies. Expansion of the tourism industry and more economic development could, however, come at the expense of environmental damage. The purpose of this study is to determine the influence of tourism, economic growth, and environmental pollution in a panel of 35 developing nations from 1995 to 2018 using a generalised method of moments (GMM) estimator. According to the findings, rising tourist numbers in developing nations are linked to greater levels of particulate matter 2.5 (PM2.5) and carbon dioxide (CO2), while economic expansion has a positive impact on the environment. For the panel of countries under consideration, there are non-linear relationships between economic growth and air pollution that follow a U-shaped pattern. The result also reveals that economic growth plays a significant moderating role in reducing the environmental effects of tourism. The finding demonstrates that to ensure long-term economic growth and development, wise public policies should be implemented that prioritise environmental sustainability. Host governments should work to support environmentally and socially responsible tourism sectors in their nations.