How Does Globalization Influence the Impact of Tourism on Carbon Emissions and Ecological Footprint? Evidence from African Countries

Abstract

Tourism and globalization are considered as drivers of economic growth since they boost income, job opportunities, infrastructural development, international trade, foreign direct investment, capital flows, and technological diffusion. However, the economic benefits of tourism and globalization could occur at the expense of increased energy consumption (from fossil fuels) and other pollution-intensive activities that worsen environmental degradation, especially in countries with lax institutions and environmental standards. The roles of tourism, globalization, and their interaction term on environmental degradation have not been thoroughly investigated. Hence, this study analyzes the moderating role of globalization on the impact of tourism on environmental degradation (carbon emissions and ecological footprint) in 31 African countries using different dimensions of tourism and globalization. It uncovers the marginal effect of tourism on environmental degradation at different levels of globalization. It utilizes strategies that account for cointegration, dynamism, endogeneity, heterogeneity, cross sectional dependency, and causality. Evidence from this study shows that globalization and its dimensions play favorable moderating roles on the impact of tourism on carbon emissions. The marginal effect of tourism on carbon emissions decreases as globalization increases, suggesting that a simultaneous increase in tourism and globalization can mitigate carbon emissions. However, no evidence to show that globalization can mitigate the environmental impact of tourism on ecological footprint. The findings differ probably because carbon emissions and ecological footprint measure different aspects of environmental degradation. This analysis emphasizes the need for countries to consider the interaction between tourism and globalization in their quest to ensure environmental sustainability.

JEL Classification: F64, Q53, Z32