Open AccessThe Trade-Off Between Tourism and Pollution for Japanese Economic Growth
Author(s) -
Giovanni Bella,
Carla Massidda
Publication year - 2021
Publication title -
tourism
Language(s) - English
Resource type - Journals
eISSN - 1849-1545
pISSN - 1332-7461
DOI - 10.37741/t.69.3.4
Subject(s) - kuznets curve , tourism , economics , sustainable development , causality (physics) , environmental pollution , error correction model , econometrics , natural resource economics , cointegration , environmental science , geography , environmental protection , ecology , physics , archaeology , quantum mechanics , biology
This paper proposes a vector error correctionmodel to investigate the relationship between polluting emissions and GDPlevels in Japan, in the period 1970-2014, and tests the validity of theEnvironmental Kuznets Curve (EKC) hypothesis driven by tourist arrivals. Ourresults validate the existence of two different causality channels among theselected variables. In particular, we find that a trade-off might exist betweenincreasing the number of tourists, which drives economic growth, and thepattern of a sustainable development, due to the increase of pollutingemissions. The analysis allows us to propose appropriate policy strategies topromote a robust and sustainable long run economic growth.