Does climate policy uncertainty affect tourism demand? Evidence from time-varying causality tests

• Nicholas Apergis ^[1] ; Konstantinos Gavriilidis ^[2] ; Rangan Gupta ^[3]
  1. [1] University of Piraeus

     University of Piraeus

     Grecia

     
  2. [2] University of Stirling

     University of Stirling

     Reino Unido

     
  3. [3] University of Pretoria

     University of Pretoria

     City of Tshwane, Sudáfrica

     

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• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 29, Nº. 6, 2023, págs. 1484-1498
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • This study examines whether climate policy uncertainty affects the propensity of people to travel. To do so, we employ the Climate Policy Uncertainty (CPU) index and US air-travel data to eight regional overseas destinations for the period 2000–2019. Using time-varying causality tests to deal with the structural breaks that exist in the relationship between CPU and US air travel, we find that CPU is a major determinant of air-travel demand to all destinations examined. The results are robust when we control for macroeconomic factors, uncertainty and geopolitical risks. The findings have important implications for destination countries and tourism professionals.