Digitalization, E‐Governance, and Environmental Policy: Enhancing Sustainable Tourism and the <scp>SDGs</scp> in Europe

ABSTRACT This study examines how e‐governance (EGOV) and digitalization (DIG), and their combined impacts, affect sustainable tourism performance (TOUR) and the SDGs in Europe. It also explores the roles of environmental policies (EPY), renewable energy use (RENG), innovation (INV), temperature changes (TEM, as a proxy for climate variability), and GHG in achieving the SDGs. The empirical analysis covered the period from 2003 to 2022. The current work employs dynamic econometric models, such as the Two‐Step System GMM and CCEMG estimators. The findings reveal that DIG and EGOV significantly contribute to both TOUR and SDGs outcomes, and their interaction (EGDG) amplifies these effects. Similarly, the interactive term between EPY and RENG (EPRE) shows stronger positive effects on sustainability outcomes than either component alone. Moreover, INV has a positive impact on SDGs through the development of green technologies and sustainable development. In contrast, GHG emissions and TEM have negative impacts on sustainability in the context considered. The findings highlight the need for an integrated approach to policy, involving both governance, technological development, and environmental measures, to improve sustainable tourism performance in Europe.