Tourism, exports, and the environmental Kuznets curve: new evidence from Latin America with implications for sustainable tourism

This paper evaluates the effects of tourism and exports on carbon dioxide emissions in Latin America from 1996 to 2019, using an Environmental Kuznets Curve (EKC) framework. It contributes to the EKC literature in several ways: i) by focusing on a region with limited empirical evidence; ii) by examining the distinct environmental impacts of tourism and exports; iii) by distinguishing their effects on emissions from fossil fuel and industrial processes (FFIP) and land-use, land-use change, and forestry (LULUCF), which are particularly relevant in Latin America; iv) by constructing environmental indexes to assess the role of regulations; and v) by using a quantile regression methodology with instrumental variables to capture exogenous impacts at different emission levels. Our findings confirm the validity of the tourism and exports extended EKCs, while revealing sector-specific dynamics. Tourism increases CO2 emissions related to FFIP and LULUCF, while exports have a positive environmental impact in both areas. We also find that regulations play a significant role in reducing pollution in medium- and highly polluted countries. From a policy perspective, strengthening regulations and promoting sustainable tourism practices are crucial to reducing CO2 emissions, particularly in high-pollution regions.