Is the Tourism-Induced Environmental Kuznets Curve Hypothesis Valid in the Most Visited Countries?

Abstract

This study aims to test the tourism-induced EKC hypothesis, which claims the existence of an inverted U-shaped relationship between environmental pollution and tourism activities, for the period 1995-2018 in the most-visited countries in terms of the number of international tourists (Spain, United States, China, Italy, Turkey, Mexico, Thailand, Germany, and England). In this study, in which ecological footprint, which is a comprehensive and alternative variable, was used as an indicator of environmental pollution, the relations between the variables were analyzed using second-generation test techniques. Long-term relationships were examined by the LM and DH test, and the coefficients were estimated with the common correlated effects mean group (CCE–MG) and dynamic common correlated effects (DCCE) estimators. As a result of the empirical analysis, it was found that there is a U-shaped relationship between environmental pollution and tourism activity, and the validity of the tourism-induced EKC hypothesis could not be confirmed.