Regime-dependent effect of tourism on carbon emissions in the Mediterranean countries

Abstract

This study aims to test the effects of the number of tourist arrivals and tourism receipts on carbon emissions for the Mediterranean countries. The study investigates 15 Mediterranean countries including Albania, Algeria, Bosnia and Herzegovina, Croatia, Cyprus, Egypt, France, Greece, Israel, Italy, Lebanon, Morocco, Spain, Tunisia, and Turkey. The sample countries are selected considering the availability of the data. The annual data covering the period between 2001 and 2017 is used for the empirical analysis. The study employs econometrics models to test the EKC (environmental Kuznets curve) hypothesis. The results show that tourist arrival and tourism receipts reduce carbon emissions. However, this effect differs for equations taking per capita income as regime variables into account. Thus, tourist arrivals increase carbon emission up to a certain threshold within the scope of EKC hypothesis; it decreases carbon emission above this level. On the other hand, the effects of tourism receipts on carbon emissions are statistically insignificant in the first regime and reduce carbon emissions in the second regime.