Exploring the dynamic linkages between tourism growth and environmental pollution: new evidence from the Mediterranean countries

ABSTRACT

The present study explores the impact of tourism on environmental pollution using a comprehensive set of air pollutants, namely CO₂, CO, NO_x, SO₂, PM_2.5, and PM₁₀, in a multivariate framework under the context of the Mediterranean countries. The panel cointegration tests indicate that there is a long-run equilibrium relationship between environmental pollution, energy consumption, economic development and tourism growth. The tourism-induced EKC hypothesis is validated for four out of six air pollution indicators in the Southern Mediterranean countries, whereas in the Northern Mediterranean region we fail to document any evidence supporting the hypothesis. In addition, tourism growth has a differential impact on different air pollution indicators across regions. The major findings from the panel Granger causality tests show that bidirectional causality exists between four air pollutants (CO₂, NO_x, SO_2, and PM_2.5) and tourism and unidirectional causality runs from CO and PM₁₀ to tourism growth in the Northern Mediterranean. In contrast, there is a feedback relationship between environmental pollution (CO and NO_x) and tourism growth and one-way causality running from environmental pollution (CO₂, SO_2, PM_2.5, and PM₁₀) to tourism development in the Southern Mediterranean.