Does tourism market diversification matter for CO₂ emissions? evidence from Singapore

This research analyzed the effect of tourism market diversification on Singapore’s CO₂ emissions by measuring the level of concentration of source countries in a foreign tourist basket of Singapore using a Herfindahl–Hirschman index. Our results indicated that the index fell over the period 1978–2020, which means the diversification of source countries of Singapore’s foreign tourists increased. By applying the recent bootstrap and quantile ARDL models, we found that tourism market diversification and inward FDI act as stumbling blocks to CO₂ emissions. In contrast, economic growth and primary energy consumption increase CO₂ emissions. Policy implications are presented and discussed.