Original scientific paper

https://doi.org/10.37741/t.69.3.4

The Trade-Off Between Tourism and Pollution for Japanese Economic Growth

Giovanni Bella orcid.org/0000-0001-5033-1711 ; Department of Economics and Business, University of Cagliari, Cagliari, Italy
Carla Massidda ; Department of Economics and Business, University of Cagliari, Cagliari, Italy

Abstract

This paper proposes a vector error correction model to investigate the relationship between polluting emissions and GDP levels in Japan, in the period 1970-2014, and tests the validity of the Environmental Kuznets Curve (EKC) hypothesis driven by tourist arrivals. Our results validate the existence of two different causality channels among the selected variables. In particular, we find that a trade-off might exist between increasing the number of tourists, which drives economic growth, and the pattern of a sustainable development, due to the increase of polluting emissions. The analysis allows us to propose appropriate policy strategies to promote a robust and sustainable long run economic growth.

Keywords

environmental Kuznets curve; tourism pollution; VECM analysis; long run causality; Japan

Hrčak ID:

261831

URI

https://hrcak.srce.hr/261831

Publication date:

3.9.2021.

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