Does environmental policy stringency discourage inbound tourism in the G7 countries? Evidence from panel quantile regression

Farah Durani (), Phan The Cong (), Qasim Raza Syed () and Nicholas Apergis ()
Additional contact information
Farah Durani: University of Business and Technology
Phan The Cong: Thuongmai University
Qasim Raza Syed: Ilma University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 6, No 60, 15109-15123

Abstract: Abstract The goal of this paper is to discern whether environmental policy stringency discourages inbound tourism in the G7 countries. The analysis is based on second-generation panel data methods in consort with the panel quantile regression approach. The findings document that environmental policy stringency plunges inbound tourism across all quantiles. Moreover, the impact of environmental policy stringency is relatively strong at higher quantiles compared to middle and lower quantiles, while the analysis reports that per capita global GDP escalates inbound tourism at all quantiles, whereas both inflation and the real effective exchange rate plunge inbound tourism. Finally, this study proposes certain policy recommendations to promote tourism. The results also survive certain robustness tests. They also imply that the countries under consideration need to adopt special measures to promote tourism, apply strict environmental control measures, while tourists should be given incentives to offset the detrimental impact of environmental regulations. Finally, the tourism-related firms should be given higher emissions permits through an emissions trading scheme, which lowers the cost of tourism, as well as tax exemptions on their imports. Graphical abstract

Keywords: Environmental policy stringency; Inbound tourism flows; G7 countries (search for similar items in EconPapers)
JEL-codes: Q50 Q58 Z30 Z38 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10668-023-03239-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:26:y:2024:i:6:d:10.1007_s10668-023-03239-4

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-023-03239-4

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().