Investigating the environmental externalities of tourism development: evidence from Tanzania

Kyara, Valensi Corbinian and Rahman, Mohammad Mafizur ORCID: https://orcid.org/0000-0002-7950-1961 and Khanam, Rasheda ORCID: https://orcid.org/0000-0003-1130-2357 (2022) Investigating the environmental externalities of tourism development: evidence from Tanzania. Heliyon, 8 (6):e09617. pp. 1-13.

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Abstract

Tourism growth is an important component for welfare improvement in the host destination, but it can be associated with environmental degradation. The aim of the current study is to assess the environmental impacts of tourism growth in Tanzania, using time series data for the period 1995–2017. It utilizes ecological footprints as a proxy for environmental damage, tourism receipt as an economic indicator, and primary energy consumption, urban population, and trade openness as control variables. The study employs Autoregressive Distributed Lag Bounds Testing, Vector Error Correction Model (VECM), and Granger causality test for analysis and the Wild Bootstrap approach to check the accuracy of the computed statistics. The VECM Granger causality test shows that in the case of Tanzania, international tourism revenue and trade openness compact environmental degradation, while urbanization and primary energy consumption accelerate it. Besides, while long run cointegration exists among the variables, the environmental Kuznets curve hypothesis was not ascertained in Tanzania. Therefore, Tanzania must adopt more proactive urban planning strategies to achieve sustainable urbanization thereby improving the quality of the environment. Additionally, it is important for Tanzania to make strategic use of trade and tourism receipts, such as investment on renewable energy, to lessen dependence on fossil fuels, and improve environmental sustainability. So, the study opens new policy perspectives with wide international relevancy as outlined in the policy implication section.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 20 Jun 2022 01:50
Last Modified: 22 Aug 2022 04:05
Uncontrolled Keywords: Environmental kuznets curve hypothesis; Environmental quality; Tanzania; Tourism development; Vector error correction
Fields of Research (2020): 38 ECONOMICS > 3802 Econometrics > 380205 Time-series analysis
38 ECONOMICS > 3801 Applied economics > 380116 Tourism economics
38 ECONOMICS > 3801 Applied economics > 380105 Environment and resource economics
Identification Number or DOI: https://doi.org/10.1016/j.heliyon.2022.e09617
URI: http://eprints.usq.edu.au/id/eprint/49144

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