Spatial dynamics of tourism and human capital: spillover effects on environmental sustainability

Purpose This study examines the spatial dynamics of environmental quality in 213 Nomenclature of Territorial Units for Statistics (NUTS)-2 regions across 23 European countries during 2016 and 2020. It evaluates the impact of tourism activity and human capital on environmental sustainability, challenging traditional assumptions about economic growth and environmental quality. Design/methodology/approach A spatial econometric modeling approach is applied to assess the interdependencies between regions. The study incorporates spatial lag and spatial error models to capture spillover effects. The Environmental Kuznets Curve (EKC) hypothesis is tested using an alternative specification, while the spatial relationships among environmental quality, tourism, and human capital are analyzed through spatial regression techniques. Findings The results contradict the conventional EKC hypothesis, revealing a convex relationship between economic growth and environmental quality. The study highlights three key findings: (1) environmental quality in a given region is significantly influenced by its neighboring regions, (2) human capital generates positive spillover effects, enhancing sustainability across regional boundaries, and (3) tourism activity produces negative externalities, contributing to environmental degradation beyond local jurisdictions. Research limitations/implications The study is limited by data availability, restricting the analysis to two time periods (2016 and 2020). A longer time series could provide more robust conclusions on the evolution of spatial environmental dynamics. Additionally, while the study focuses on European NUTS-2 regions, future research could explore the role of different policy frameworks and regional governance structures in shaping environmental quality at various spatial scales. Practical implications The findings emphasize the need for coordinated regional policies to mitigate environmental externalities. Policymakers should strengthen inter-regional cooperation to prevent environmental degradation from spreading across borders. Investments in human capital can enhance sustainability efforts, while sustainable tourism strategies are required to counteract the negative environmental effects of tourism-related activities. Originality/value This study provides novel empirical evidence on the spatial interdependencies of environmental quality, tourism, and human capital within a European context. By incorporating spatial econometric techniques, it offers a more comprehensive understanding of cross-regional environmental spillovers, informing policymakers about the necessity of regionally integrated sustainability strategies.