Making tourism more sustainable: empirical evidence from EU member countries

Abstract

AbstractWe analyze the sustainability factors that are pertinent to the tourism industry by exploring the effects of economic, environmental and social determinants on sustainable value added (SVA) in a two-stage analysis on a sample of 27 EU countries for the 2013–2019 period. In the first stage, we determine the relative efficiency based on DEA. In the second stage, we use the obtained variables in a dynamic panel data analysis setup. Contrary to the omnipresent push for complete green and sustainable transformation we find that increased GHG emissions will lead to an initial increase in SVA as the tourism sector needs time and effort to transition from a resource-oriented to an environmental-oriented production process. Contrary to previous findings, we show that environmental policies are not effective and that environmental taxation-related policies and procedures need to be revised. Economic growth implies increased pollution as well as increased SVA, as it requires more inputs and thus consumes more natural resources. Because of this it is of utmost importance to pay more attention to the quality of economic development in order to mitigate negative environmental externalities in the tourism sector.