Publication: The nexus between government spending, economic growth, and tourism under climate change: testing the CEM model for the USA
No Thumbnail Available
Date
2023
Authors
Bulut U.
Ongan S.
Dogru T.
I??k C.
Ahmad M.
Alvarado R.
Amin A.
Rehman A.
Journal Title
Journal ISSN
Volume Title
Publisher
Springer Science and Business Media Deutschland GmbH
Abstract
This study examines the impact of government spending, income, and tourism consumption on CO2 emissions in the 50 US states through a novel theoretical model derived from the Armey Curve model and the Environmental Kuznets Curve hypothesis. The findings of this research are essential for policymakers to develop effective strategies for mitigating environmental pollution. Utilizing panel cointegration analysis, the study provides valuable insights into whether continued increases in government spending contribute to higher pollution levels. By identifying the threshold point of spending as a percentage of GDP, policymakers can make informed decisions to avoid the trade-off between increased spending and environmental degradation. For instance, the analysis reveals that Hawaii's tipping point is 16.40%. The empirical results underscore the importance of adopting sustainable policies that foster economic growth while minimizing environmental harm. These findings will aid policymakers in formulating targeted and efficient approaches to tackle climate change and promote long-term environmental sustainability in the United States. Moreover, the impact of tourism development on CO2 emissions varies across states, with some US states experiencing a decrease while others see an increase. � 2023, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.
Description
Keywords
Armey curve , Climate change , Environmental Kuznets curve , Government expenditures , Tourism , Carbon Dioxide , Climate Change , Economic Development , Government , Internationality , Tourism , Hawaii , carbon dioxide , climate change , economic growth , environmental degradation , Gross Domestic Product , Kuznets curve , policy making , public spending , sustainability , tourism development , trade-off , climate change , economic development , government , international cooperation , tourism