Modeling the Nonlinear Impact of Tourism Fluctuations on Green Economic Growth

There has been a worldwide debate on green growth among academics, policymakers and international think tanks in recent years. Escalating green growth is a key objective of countries in order to attain sustainable development. However, it is essential to identify the critical influencing factors of green growth. Considering this scenario, this paper investigates the nonlinear relationship between tourism fluctuations and green growth in G7 economies. In particular, the study addresses whether fluctuations in tourism have a nonlinear impact on green growth at high, moderate and low levels of green growth. The outcomes from the method of moments quantile regression document a substantial detrimental impact of tourism fluctuations on green growth across quantiles, indicating a nonlinear and adverse impact of tourism fluctuations on green growth. The findings suggest reforms in the tourism sector to transform conventional tourism into sustainable tourism.