What drives ecological footprint in top ten tourist destinations? Evidence from advanced panel techniques.

Abstract

The persistent dwindling of the biocapacity has caused the ecological footprint (EF) to keep increasing in the top ten tourist destinations over the last three decades. Moreso, economic growth, natural resource rent, and urbanization substantially increased for the same period. Tourism contributes to economic prosperity. However, growth in tourism promotes an increase in energy consumption, natural resource exploration, transportation, and consequential ecological distortions. It is important to understand the predictors of EF to suggest suitable policies for environmental sustainability. Hence, this study examines the predictors of EF by considering factors that could influence EF. More precisely, the study analyzes the linkage among economic growth, natural resource rent, urbanization, energy intensity, and tourism using some of the most advanced and reliable econometric techniques, such as Westerlund's (J Appl Econ 23(2):193-233, 2008) cointegration technique, and the continuously updated full modified (CUP-FM) and continuously updated bias-corrected (CUP-BC), long-run estimators. The outcomes of the analysis indicate that EF has a negative association with urbanization and natural resources, which implies that an abundance of natural resources and increasing urban population can help to reduce environmental degradation. Likewise, energy intensity helps in decreasing EF, while economic growth adds to EF. Tourist arrival and tourist receipt also add to EF and, therefore, negatively affect environmental quality. Finally, policy directions are discussed to reduce environmental degradation without reducing economic growth.