Impact of environmental efficiency on tourism export under the moderation of inflation: a cross-country analysis

Abstract

A country’s tourism sector plays an essential role in the nation’s economy and aids in globalization. With the advanced technological establishments, this sector becomes more promising for economic growth. However, the connection of tourism development to environmental effects cannot be denied. Tourism export is also a recent term in this sector that needs to be explored. Therefore, this study aims to determine the impact of environmental efficiency (EE) on tourism export using the cross-country data of 90 countries for the sample period 2011–2020. The panel data is used for the analysis. The findings suggest that EE adversely affects tourism exports. A negative relationship between the two is also observed under the moderating effect of inflation. It means EE reduces tourism exports under higher inflation. This study notably contributes to existing literature through its unique and novel evidence on the EE and tourism export connection. This study recommends that EE be treated as a critical component of tourism policymaking. Figure A presents the graphical abstract.