Dynamic linkages between sustainable tourism, energy, health and wealth: evidence from top 80 international tourist destination cities in 37 countries

Abstract

This study examines the relationship between sustainable tourism, energy, health, and wealth in a panel of 37 tourists’ induced countries that covered around top 80 international tourist destination cities. The panel Generalized Method of Moments (GMM) estimator is used to evaluate the dynamic linkages between the variables. The results show that inbound tourism has a positive relationship with energy demand, health expenditures, per capita income, FDI inflows, trade, and carbon dioxide (CO2) emissions while outbound tourism increases health expenditures. International tourism receipts and global financial crisis increases greenhouse gas (GHG) emissions and CO2 emissions respectively. Economic growth and trade openness both increases inbound tourism while FDI inflows increase tourism receipts. The study confirms Environmental Kuznets Curve (EKC) for CO2 emissions and GHG emissions, which eventually indicates that growth reduces the environmental impact of economic activity in the premises of international tourism indicators. The results further validate the tourism-led growth hypothesis in a panel of selected countries.