Tourism adaptability amid the climate change and air pollution in BRICS: a method of moments quantile regression approach

The main objective of this paper is to look at how environmental degradation in the form of climate change and air pollution affect international tourism for five countries such as Brazil, Russia, India, China, and South Africa (BRICS) over the years 1990-2019. Other independent variables include information and communication technology (ICT) and democracy. We also look at the role of environmental regulation to see the validity of porter hypothesis in the tourism sector. To achieve this objective, we apply a novel method of moments quantile regression approach as well as a robust causality technique. The result shows that at lower and medium quantile, CO2 emission has positive impact on tourism while at higher quantile, CO2 emission has negative but insignificant effect on tourism in BRICS countries. The result for PM2.5 is uniform across all the quantiles, showing the negative effect on tourism. ICT and human capital positively affect the tourism while democracy has negative impact on the tourism sector of the BRICS nations. The result also validated the Porter hypothesis for tourism sector. We conclude that tourism industry stakeholders and the environmental policymakers must work together to integrate tourism policies with BRICS countries' environmental conservation policies as part of the transition to sustainable tourism industry.