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WP/22/178
IMF Working Paper
European Department
Dirty Dance: Tourism and Environment
Prepared by Serhan Cevik*
Authorized for distribution by Alfredo Cuevas September 2022
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Abstract
Tourism was one of the fastest-growing sectors before the COVID-19 pandemic, accounting for about 10 percent of global GDP. But it has also created a number of challenges including environmental degradation, especially in small island countries where the carbon footprint of tourism constitute substantial share of carbon dioxide (CO2) emissions. This study empirically investigates the impact of tourism on CO2 emissions in a relatively homogenous panel of 15 Caribbean countries over the period 1960–2019. The results show that international tourist arrivals have a statistically and economically significant effect on CO2 emissions, after controlling for other economic, institutional and social factors. Therefore, managing tourism sustainably requires a comprehensive set of policies and reforms aimed at reducing its impact on environmental quality and curbing excessive dependency on fossil fuel-based energy consumption.
| JEL Classification Numbers: | O40; O44; Q40; Q51; Q54 |
| Keywords: | Tourism; climate change; CO2 emissions; energy intensity; mitigation; adaptation |
| Author’s E-Mail Address: | scevik@imf.org |
| JEL Classification Numbers: | O40; O44; Q40; Q51; Q54 |
| Keywords: | Tourism; climate change; CO2 emissions; energy intensity; mitigation; adaptation |
| Author’s E-Mail Address: | scevik@imf.org |
The author would like to thank Bas Bakker, Katharina Bergant, Emanuele Massetti, Anke Weber, and Karlygash Zhunussova for their insightful comments and suggestions.