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The Impact of Tourism Development and Environmental Pollution on Income Inequality: Empirical Evidence from Greece

In: Advances in Applied Macroeconomics

Author

Listed:
  • Olga Stergiou

    (University of Western Macedonia)

  • Antonis Tsitouras

    (University of Western Macedonia)

Abstract

This study investigates the correlation between income inequality, tourism development, and environmental pollution in Greece from 1980 to 2022, employing the autoregressive distributed lag (ARDL) methodology. The authors utilize the Gini coefficient as a metric for quantifying income inequality. Our model specification incorporates various variables, including gross domestic product (GDP) per capita growth, gross fixed capital formation, tourist arrivals, population growth, and ecological footprint. The findings suggest a notable correlation between economic growth and tourism development, substantially reducing income inequality. Conversely, it is observed that long-term exposure to environmental pollution intensifies income inequality. Their research indicates that the implementation of sustainable tourism policies and environmental regulations is crucial to achieve a balance between economic advantages and social fairness. These observations offer valuable direction for policymakers advocating for fair and enduring progress in Greece.

Suggested Citation

  • Olga Stergiou & Antonis Tsitouras, 2025. "The Impact of Tourism Development and Environmental Pollution on Income Inequality: Empirical Evidence from Greece," Springer Proceedings in Business and Economics, in: Nicholas Tsounis & Aspasia Vlachvei (ed.), Advances in Applied Macroeconomics, chapter 0, pages 329-348, Springer.
    • Handle: RePEc:spr:prbchp:978-3-031-76658-9_17
    DOI: 10.1007/978-3-031-76658-9_17
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    More about this item

    Keywords

    Income inequality; Economic growth; Tourism; Environmental pollution;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Z38 - Other Special Topics - - Tourism Economics - - - Policy
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • D30 - Microeconomics - - Distribution - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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