Why and how tourism affects green development: evidence for China

Green development, considering economic and environmental performance, has received increased attention globally. Moreover, the significant economic and environmental impacts of tourism are widely accepted by scholars. However, the nexus of tourism and green development is still unclear. To fill this gap, this study examines the effects of tourism on green development performance measured as green total factor productivity and the influence mechanisms. China’s 308 cities’ panel data between 2005 and 2019 provide empirical evidence. The results demonstrate an inverted U-shaped relationship between tourism and green total factor productivity, which is substantiated via various rigorous robustness tests. The key drivers of green total factor productivity change in cities include tourism-induced technological innovation, industrial structure optimisation, and environmental enhancement. Besides, the nexus of tourism and GTFP varies significantly across different socio-economic development regions. The positive relationship exists in relatively developed areas, while less-developed western China still keeps inverted U-shaped links between tourism and GTFP. The U-shaped relationship exists in central and northeastern China. The article is the first to systematically explore the impact of tourism on green development while revealing several potential mechanisms, thus significantly contributing to the literature on green development and sustainable tourism.