Tourism development, CO2 reduction and institutional quality

Purpose The study examines how carbon dioxide reduction, Institutional Quality, and their interaction impact tourism development. Design/methodology/approach Using a sample of 147 countries for a 21-year period, 2000 to 2020. The study uses a two-way fixed-effects regression and various robustness checks to confirm its results. Findings Across all countries, both carbon dioxide reduction and institutional quality positively influence tourism development. Additionally, the interaction between carbon dioxide reduction and institutional quality positively affects tourism development. In developed countries, carbon dioxide reduction does not significantly affect tourism development, whereas institutional quality has a positive effect. Conversely, in developing countries, both carbon dioxide reduction and institutional quality positively influence tourism development. However, the interaction between carbon dioxide reduction and institutional quality does not have a significant effect on tourism development in either developed or developing countries. Originality/value This study contributes to the empirical analysis of the impact of carbon dioxide reduction, institutional quality, and their interaction on countries' tourism development. This has received less attention in the global research literature.