The Moderating Role of Tourism in the Impact of Financial Crime on Deforestation

Abstract

Illegal logging significantly contributes to the climate crisis, as trees are vital for converting carbon dioxide into oxygen. This study examines how tourism can reduce the impact of financial crime on deforestation by providing alternative ways to economically benefit from forests. Using data from 154 countries between 2012 and 2020, the research employs spatial clustering and dynamic panel models to confirm that tourism can monetize trees as green attractions, rather than through logging. The findings highlight tourism's potential as a sustainable industry with long-term growth prospects, even in countries with high corruption but strong environmental awareness. This insight is crucial for policymakers aiming to balance economic development with environmental protection.