Abstract
Global tourism has witnessed a significant positive implication on the development of developing economies. Despite the positive implication of tourism, it imposes a serious environmental cost such as environmental pollution. Brazil receives a large number of tourists each year that potentially affects economic growth and development. Therefore, this study investigates the effect of tourism on GDP and CO2 emissions in Brazil. We used a nonlinear ARDL approach to examine the nexus between tourism, economic growth, and CO2 emissions in Brazil for the period 1995–2018. The outcomes of this study reveal both short-run and long-run associations between tourism, GDP per capita, and CO2 emissions in Brazil. Nevertheless, both tourism and economic growth cause significant deterioration of the environment quality in Brazil. These findings suggest that the policymakers shall look for more sustainable and eco-friendly economic growth and tourism policies to preserve the environmental quality in Brazil.
Highlights
The global tourism industry has changed remarkably with exponential growth in tourism demand in the past few decades
This study investigates the association between economic growth, tourism, and CO2 emissions to assess the implications of economic and tourist activities on the environmental quality using the case of Brazil
Brazil is the largest economy in Latin America and has a substantial contribution towards CO2 emission in the region, which has farreaching effects on social and environmental indicators
Summary
The global tourism industry has changed remarkably with exponential growth in tourism demand in the past few decades This trend causes environmental degradation and a high level of energy consumption at the tourist destination. Previous studies have explored the negative impacts of tourism activities on the host country’s environment for different countries including France, Spain, the United States, China, Italy, Mexico, the United Kingdom, Turkey, Germany, and Thailand Their findings suggest that tourism has an adverse effect on the environment quality (Lee and Brahmasrene, 2013; Tang et al, 2014; Aziz et al, 2020). Literature Review entails the detailed review of literature, The Case of Brazil: Stylized Facts presents the stylized facts of Brazil, The Case of Brazil: Stylized Facts and Methodology presents the methodology and empirical results, and Empirical Analysis concludes the study
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