The Causal Effect of Air Pollution on International Tourist Arrivals

  • Arief Rahman Universitas Indonesia

Abstract

This paper adopts two approaches in examining the effects of air pollution on foreign tourist visits, namely instrumental variables and long-run growth, using dataset of 141 countries in period 2010-2017. The log of value added of industry per capita is used as an instrumental variable for the log of mean annual exposure of PM2.5 air pollution. Long-run growth of international tourist arrivals and mean annual exposure of PM2.5 air pollution are used in analyzing the long-run growth effect. The findings are that the level of air pollution has a negative influence on the number of foreign tourists visiting a country. Another finding is that the tourist arrival-air pollution elasticity has negative value and less than one.


Keywords: Tourist, Air Pollution, IV, Long-Run Growth

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Published
Jun 20, 2020
How to Cite
RAHMAN, Arief. The Causal Effect of Air Pollution on International Tourist Arrivals. Syntax Literate ; Jurnal Ilmiah Indonesia, [S.l.], v. 5, n. 6, p. 21-33, june 2020. ISSN 2548-1398. Available at: <http://jurnal.syntaxliterate.co.id/index.php/syntax-literate/article/view/1321>. Date accessed: 14 july 2020. doi: http://dx.doi.org/10.36418/syntax-literate.v5i6.1321.