Rural Tourism, Economic Growth, and Environmental Sustainability: Empirical Evidence Based on County-Level Data in China

Jiahui Li, Yu Yang and Yuqi Ye ()
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Jiahui Li: China Academy of Public Finance and Policy, Central University of Finance and Economics, Beijing 100081, China
Yu Yang: China Academy of Public Finance and Policy, Central University of Finance and Economics, Beijing 100081, China
Yuqi Ye: School of Economics, Dongbei University of Finance and Economics, Dalian 116025, China

Sustainability, 2025, vol. 17, issue 20, 1-32

Abstract: Rural tourism is widely recognized as a key pathway for sustainable development by balancing economic growth with environmental protection. Utilizing an interdisciplinary analytical framework combining tourism, economy, and environment, this study applies a difference-in-differences (DID) approach to examine the economic effects and environmental costs of rural tourism policies in China, based on a sample of 1399 counties from 2007 to 2023. The empirical results reveal that rural tourism policies significantly boost per capita GDP, with effects significantly driven by the increase in newly registered tourism-related enterprises and expanded land transfer for tourism development. The impact is more pronounced in non-poor counties, those near city centers, and those with better transportation infrastructure. Further analysis demonstrates that while rural tourism development contributes to economic growth, the associated environmental costs are much lower than the economic gains. This study contributes to the literature by combining tourism policy evaluation with environmental performance, demonstrating an underlying significant role of rural tourism in achieving a sustainable development pattern. And for the policymakers who seek to achieve rural revitalization, it is imperative to embed the principles of environmental sustainability into rural tourism initiatives to ensure long-term sustainability.

Keywords: rural tourism; difference-in-differences model; rural revitalization; environmental sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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