Abstract
This study proposes and tests two hypotheses concerning the effects of hotel industry operations on air quality based on data of 26 major tourist cities in China from 2002 to 2017. The empirical analyses take two steps. In the first step, panel regression test results reveal that hotel industry operations (measured by hotel sales revenue) significantly raise the value of particulate matter (PM)2.5 (the key indicator of air quality), supporting the first hypothesis that hotel industry operations deteriorate air quality and providing empirical evidence of the adverse impact of the hotel industry on air quality. In the second step, subsample analyses support the second hypothesis that the impact of hotel sales revenue on air quality diminishes over time. The results from the rolling regression tests validate the existence of a diminishing effect of hotel industry operations on air quality.
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