Tourism Development, Waste Generation, and Economic Performance: Panel Evidence from European Countries

This study explores the dynamic relationships between tourism development, waste generation, and economic growth in 27 European countries over the period 2010–2021, offering new perspectives on sustainable tourism dynamics. Using panel data and simultaneous-equations models estimated via the Generalized Method of Moments (GMM), we analyze the direction and strength of causal links among these variables. Our findings indicate bidirectional causality between tourism and economic growth, as well as between tourism development and waste generation, while waste generation has a unidirectional effect on economic growth. Moreover, tourism significantly contributes to economic growth in European countries, but its expansion may increase waste generation if sustainable practices are not implemented. These findings offer key insights for policymakers aiming to promote sustainable tourism strategies that simultaneously foster economic growth and environmental preservation.