QUALITY OF LIFE AND THE TRADE-OFF BETWEEN ENVIRONMENTAL EXTERNALITIES AND TOURISM RATE

This paper is motivated by the trade-offs that occur in the relationship between residents and tourists. We analyse the environmental externalities that impact a destination's sustainability with respect to the effect that crowding has on the relationship between residents and visitors across European countries. This study investigates the role that tourism plays in the spillover of some of these environmental externalities (greenhouse gas emissions, crime, pollution and noise) and its effect on various aspects of quality of life degradation and the effect that the rate of tourism sector development has on the resulting negative externalities. The paper estimates an economic model of tourism growth and environmental externalities-quality of life trade-offs, exploiting instrumental variable techniques for panel data with external instruments and GMM instruments.