Re-evaluating the environmental impacts of tourism: does EKC exist?

Jeyhun I Mikayilov,Shahriyar Mukhtarov,Jeyhun Mammadov,Mayis Azizov

doi:10.1007/s11356-019-05269-w

Abstract

The study investigates the long-run impact of tourism development on ecological footprint by employing the time-varying coefficient cointegration approach (TVC), in addition to the conventional cointegration techniques in the case of Azerbaijan for the period of 1996–2014. Based on the TVC estimation results, the coefficient of tourism development, which is the income elasticity of environmental degradation, was found to be time invariant. The paper uses energy consumption, trade, urbanization, and institutional quality indicators as control explanatory variables. The estimation results revealed that trade and energy consumption have statistically significant and positive impact on ecological footprint, while the coefficients of the other explanatory variables were found to be insignificant. Both the conventional estimation methods and the TVC concluded that, for the relationship between ecological footprint and tourism development, the EKC hypothesis is not present in Azerbaijan. Policy implications for the resource-rich economies have been discussed.

Highlights

IntroductionTourism sector has experienced continuous growth in both the developed and developing countries
Over the few decades, tourism sector has experienced continuous growth in both the developed and developing countries
The study analyses the impact of tourism on environmental degradation, employing time-varying coefficient cointegration approach, which is the first application to the ecological footprint-tourism relationship, in addition to the conventional functional form, and fixed coefficient methods

Summary

Introduction

Tourism sector has experienced continuous growth in both the developed and developing countries. Representing one of the main income sources for many developing countries, tourism sector is viewed as an engine of economic growth through the development of infrastructure, the creation of jobs and enterprises, and contribution to the balance of payments. According to the World Tourism Organization (UNWTO), over the last 5 years, international tourism has grown faster than world trade, represented 7% of the world’s exports (generated US$ 1.5 trillion in export earnings) and 30% of service exports, and contributed to 10% of the world GDP in 2016 (UNWTO 2017). Theoretical and empirical studies suggest that while tourism has a positive contribution to economic growth and development, it is held responsible for its adverse impacts on the environment. Environmental degradation can occur in two ways. As the tourism industry expands, the exploitation of natural resources increases the risk of environmental

Objectives

Findings

Discussion

Conclusion