Revealing the interrelationship of economic, environmental, and social factors with globalization in G-7 countries tourism growth: A CS-ARDL approach

Abstract

Sustainable tourism is a key driver of economic growth in G-7 countries, contributing significantly to gross domestic product (GDP) and employment. However, its rapid expansion raises concerns about environmental impact, including CO₂ emissions and resource consumption, while globalization and green technology offer both challenges and opportunities for sustainable growth. This study explores the dynamic relationship between climate change, economic growth, green technology, globalization, government effectiveness, and tourism growth in G-7 countries from 1996 to 2019, providing new insights into the dynamics of sustainable tourism. Using the cross-sectional autoregressive distributed lag (CS-ARDL) model and panel data techniques, the findings reveal that GDP and green technology innovations positively impact sustainable tourism growth, while CO₂ emissions hinder it. Specifically, a 1% increase in GDP and green innovations boost sustainable tourism by 0.83% and 4.71%, respectively, while higher emissions reduce growth by 0.77%. The research emphasizes the importance of economic development and green technology for fostering sustainable tourism in G-7 nations.