ASSESSING THE DYNAMICS OF TOURISM AND ENVIRONMENTAL QUALITY: A ROLLING WINDOW TIME SERIES ANALYSIS FOR PAKISTAN

Abstract

With the emergence of globalization, the tourism sector is rising rapidly with time in both developed and developing countries, and due to its significant role, it plays an important role in growth and environmental performance. Tourism can lead to pollution (air, water, and noise), natural resources devastation, and increased pressure on the ecological system. The basic determination of this research work is to measure how financial development, tourism, population mass, and quality of government cause CO2 emissions, which deteriorate the environment. It also delivers interesting, remarkable, and fruitful results to solve these four harms on a single table. Specifically, the study uses Auto Autoregressive Distributed Lag Model (ARDL) for co-integration analysis to construct reduced environmental sustainability indices for Pakistan from 1980 to 2024. The strategy inferences concerning the conclusions of this study will only be valid from the perspective of Pakistan’s economy. The empirical results show that financial development, population density, government policies, and tourism have a positive impact on the environmental degradation of Pakistan last forty years. The country has a strong potential for eco-tourism development, promoting sustainable practices and responsible travel for eco-friendly steps via effective governance in the future.

Keywords: Environmental Quality, Population Density, Financial Development, Tourism, Quality of Government