Non-linear relationship between tourism, economic growth, urbanization, and environmental degradation: evidence from smo
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RESEARCH ARTICLE
Non-linear relationship between tourism, economic growth, urbanization, and environmental degradation: evidence from smooth transition models Syed Ali Raza 1
&
Muhammad Asif Qureshi 2 & Maiyra Ahmed 1 & Shahzad Qaiser 3 & Ramsha Ali 4 & Farhan Ahmed 5
Received: 5 May 2020 / Accepted: 16 July 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract The study aims to analyze two objectives: first is to explore the non-linear relationship between tourism development, economic growth, urbanization, and environmental degradation, and also to analyze the threshold level of the contribution of tourism development on environmental degradation in top tourist arrival destinations. We applied the newly proposed econometric method panel smooth transition regression (PSTR) framework with two regimes on yearly panel data from 1995 to 2017. Findings suggest that the relationship between tourism development and environmental degradation is non-linear and regime dependent. Furthermore, the findings indicated that the relationship above the threshold level is negative and significant, while below the threshold, tourism development is positive and significant effect on environmental degradation. Tourism development and environmental degradation also exhibit the inverted U-shape relationship meaning that at a particular point, increase in tourism development increases in environmental degradation but after a particular point, increase in tourism development decreases the environmental degradation. The economic growth and urbanization also portray a non-linear and regimedependent relationship with environmental degradation. The study assists policies and empirical information. Keywords Tourism development . Environmental degradation . Population . GDP . PSTR model
Introduction Since the past few years, some noticeable changes have taken place in the worldwide environment structure. As stated by the State of Climate states, the universal temperature of the surface has been 0.38 to 0.48 degree centigrade over 1981 until
2010 on average, which categorizes them as hottest years among which the second wave of hottest years starting from 2014. The statement highlights that the worldwide growth level of carbon emission is the leading cause of global warming that has increased four times since the 1960s. Noticeable changes, for example, drop in the level of snow
Responsible Editor: Nicholas Apergis * Syed Ali Raza [email protected] Muhammad Asif Qureshi [email protected] Maiyra Ahmed [email protected] Shahzad Qaiser [email protected]
1
Department of Management Sciences, IQRA University, Karachi 75300, Pakistan
2
Faculty of Business Administration and Social Sciences, Mohammad Ali Jinnah University, Karachi, Pakistan
3
Department of Computer Science, Capital University of Science and Technology (CUST), Islamabad, Pakistan
4
School of Quantitative Sciences, UUM College of Arts and Sciences, Universiti Utara Malaysia, UUM, 06010 Sintok, Kedah, Malaysia
5
Department of
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