Estimating the tourism induced environmental Kuznets curve in France

Bella, Giovanni

2018-01-01

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Abstract

France has retained its position as the world’s favourite tourism destin- ation. Accounting for around 83 million visitors and 4.2% of the total employment, the tourism sector in France contributes to nearly 9% of the total GDP. However, as reported by the World Tourism Organization, road and air travel related to tourism activities account for approxi- mately 10% of the total CO2 emissions in the atmosphere, thereby con- tributing to severe air pollution. Thus, initiatives are necessary to prevent environmental damage that could have a corresponding detri- mental effect on the tourism industry itself and slow down the country’s economic growth. This study utilises a vector error correction model (VECM) to investigate the relationship between polluting emissions, GDP levels, and tourism flows in France to test the validity of the environ- mental Kuznets curve (EKC) hypothesis for the period 1995–2014. Additionally, based on a joint analysis of long-run parameters and caus- ality links, appropriate policy strategies are proposed to promote robust and sustainable long-run economic growth.