Title: The dynamics of governance, tourism and environmental degradation: the world evidence

Authors: Muhammad Haseeb; Sallahuddin Hassan; Muhammad Azam; Tulus Suryanto

Addresses: Faculty of Business Management and Professional Studies (FBMP), Management and Science University (MSU), University Drive, Seksyen 13, 40100, Shah Alam, Selangor, Malaysia ' School of Economics, Finance and Banking (SEFB), College of Business (COB), University Utara Malaysia (UUM), Sintok, 06010, Kedah, Malaysia ' Department of Economics, Abdul Wali Khan University, Mardan KPK, Pakistan ' Faculty of Islamic Economics and Business, The State Islamic Institute of Raden Intan, Lampung, Indonesia

Abstract: Efficient utilisation of scarce resources is always the prime aim of every state to ensure social welfare while maintaining a clean and green environment for sustainable development. Therefore, this study is an attempt to empirically investigate the linkages among corruption, democracy, tourism, and CO2 emissions for selected disaggregate and aggregate panel data over the period 1995-2015. The FMOLS results indicate that the corruption and tourism at disaggregate and aggregate levels are substantial contributors of CO2 emissions. These empirical results also reveal that corruption and tourism in low-income countries have a higher impact on CO2 emissions compared to high-income countries. Besides, democracy in all panels except low-income countries has helped to reduce CO2 emissions. Furthermore, tourism is undeniably a source of economic growth, however, it should not be at the cost of environmental degradation. Similarly, high endemic corruption needs to be controlled, and unregulated CO2 emissions must be reduced to ensure sustainable development.

Keywords: governance; tourism; environmental degradation; CO2 emissions; fully modified ordinary least squares; FMOLS.

DOI: 10.1504/IJGENVI.2018.095155

International Journal of Global Environmental Issues, 2018 Vol.17 No.4, pp.340 - 363

Received: 14 Feb 2017
Accepted: 02 Feb 2018

Published online: 01 Oct 2018 *

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