The effect of globalization, income and tourism on environment: An empirical analysis

Abstract

This study investigates the impact of globalization, real income, and tourism on the environment in top 10 destinations that attract the most tourists, using panel unit root, panel cointegration, and panel cointegration estimators for the period between 1995 and 2014. Panel cointegration test results show that the series moves together in the long run. According to the long-run panel estimator results, an increase in real income negatively affects the environment in China, France, Spain, Thailand, and the UK. Tourism decreases environmental degradation in Germany, Italy, the UK, and the United States. Globalization reduces environmental degradation in France and the UK. The short-run panel estimator shows that an increase in real income in all countries, except China, increases environmental degradation. Tourism decreases environmental degradation in Mexico and increases it in Spain. Finally, globalization contributes to the reduction of environmental degradation in Italy.