The Impact of Economic Policy Uncertainty on the Vehicle Miles Traveled (Vmt) in the U.S.

Demir, Ender; Gözgör, Giray

doi:10.15604/ejbm.2016.04.03.004

Cited by 8 publications

(6 citation statements)

References 18 publications

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“…The main finding of our paper is somewhat in line with the previous results of Dragouni et al (2016), showing that there is a significant spillover from EPU to outbound tourism. The findings of our paper are also in line with the previous findings of Gozgor and Ongan (2017) and Demir & Gozgor (2016), in which they find that the EPU index is negatively associated with domestic tourism and travel demand in the United States, respectively. Considering the findings of this study along with the previous studies, we conclude that uncertainty is an obstacle in the development of tourism.…”

Section: Resultssupporting

confidence: 92%

“…For example, Dragouni et al (2016) investigate the spillover effects of sentiment and mood shocks on the U.S. outbound tourism demand. It is shown that there is a significant interrelationship among sentiment, mood, and outbound tourism demand in the U.S. Demir & Gozgor (2016) document that the EPU causes a decrease in the vehicle miles traveled (VMT) in the U.S. for the time period of 1978-2014. Chatziantoniou et al (2016) document that a higher level of the consumer confidence index is positively related to a higher demand for the outbound tourism.…”

Section: Previous Literature On the Effects Of Epu On Tourismmentioning

confidence: 99%

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The Effects of Economic Policy Uncertainty on Outbound Travel Expenditures

Gözgör¹,

Demir²

2018

JOC

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Tourism has been one of the fastest growing industries and it makes important contributions on economies. Based on this, the literature aims to determine the factors affecting tourism demand behavior. In this paper, we analyze the effect of economic policy uncertainty (EPU) on both total and personal outbound travel expenditures in the panel data of 17 developed and developing countries. This is the first paper to examine the impact of EPU on travel expenditures within a tourism demand framework. By using the fixed-effects and the Least Square Dummy Variable (LSDV) estimation techniques, we find that an increase in the level of uncertainty decreases travel expenditures. Our findings imply that when people experience an increase in uncertaintyrelated economic policies, they tend to decrease their expenditures abroad. On average, a one standard deviation rise in EPU leads to a 3% and a 6% decrease in the total and personal travel expenditures. We also find that the effect of EPU on travel expenditures is higher in developing economies compared to developed countries. The empirical results in this paper suggest that governments should realize the suppressing effect of uncertainties about their economic policies on tourism demand.

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Section: Resultssupporting

confidence: 92%

Section: Previous Literature On the Effects Of Epu On Tourismmentioning

confidence: 99%

The Effects of Economic Policy Uncertainty on Outbound Travel Expenditures

Gözgör¹,

Demir²

2018

JOC

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“…For instance, Balcilar et al (2017) studied the oil market and EPU nexus, Pastor and Veronesi, (2010) linked EPU with stock prices, while Dibiasi et al (2018) linked EPU and investments. Demir and Gozgor (2016) unfolded that EPU is negatively linked with travel time in the US. Jiang et al (2019) is the first study that probed causal association between EPU and CO2 emissions using sectoral data of the US and revealed a causal association between both variables.…”

Section: Literature Reviewmentioning

confidence: 99%

Clean energy consumption, economic growth, and environmental sustainability: What is the role of economic policy uncertainty?

et al. 2022

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Undoubtedly, energy is indispensable to attain economic development; however, it also generates CO2 emissions, which are the dominant contributor to environmental deterioration and climate change. In this regard, clean energy can help to achieve both sustainable development and environmental sustainability since it comprises non-carbohydrate energy sources that do not or seldom generate emissions. Against this backdrop, this work considers economic policy uncertainty (EPU) and probes the impact of clean energy consumption on CO2 emissions in the third largest European economy France from 1987 to 2019 controlling urbanization and economic growth. Using the STIRPAT framework, the study employed the novel Augmented ARDL method that overcomes the limitations of the ARDL methods. The outcomes disclosed strong evidence of cointegration as F-statistics (overall and independent variables) and t-statistics of the dependent variables were significant. The long-run analysis revealed that EPU poses a threat to environmental sustainability by augmenting emissions levels. Surprisingly, clean energy consumption does not contribute to emissions reduction in the long-run. Economic growth boosts CO2 emissions, while urbanization is conducive to environmental quality supporting ecological modernization theory.The study detected causality from EPU to economic growth and emissions. Finally, based on the study outcomes, a policy framework is suggested to address the objectives of Sustainable Development Goal (SDG) 7 and 13.

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“…Tsui et al ( 2018 ) study in the context of business tourism in New Zealand confirms the findings of Gozgor and Ongan ( 2017 ). Demir and Gozgor ( 2016 ) study in the context of vehicular mileage for the United States from 1987 to 2014 confirms the adverse impact of EPU on vehicular mileage. Using a tourism demand model Demir and Gözgör ( 2018 ) explores how the EPU index negatively affects outbound tourism for a panel set of fifteen countries Ongan and Gozgor ( 2018 ) based on quarterly data from 1996Q1 to 2015Q1 examines the impact of EPU on inbound tourist flows from Japan to the United States.…”

Section: Review Of Literaturementioning

confidence: 88%

Do pandemics have an asymmetric effect on tourism in Italy?

Uzuner

Ghosh

2020

Qual Quant

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In this study, the asymmetric Granger causality relationship between tourist arrivals and world pandemic uncertainty index is examined by controlling inflation, consumer confidence index, and industrial production for the period 2000M1 and 2020M1 in Italy. To the best of our knowledge, the current study is one of the few studies to investigate the relationship between tourist arrivals and world pandemic uncertainty in an asymmetric framework. The empirical results show that using the Granger causality test in a linear framework causes bias results due to misspecification. Therefore, the study relies on asymmetric Granger causality test results which reveal that the positive shock of world pandemic uncertainty Granger causes a negative shock of tourist arrivals. It is suggested that international tourist arrivals are sensitive to external shocks such as pandemics and in such instances the government of the concerned country can insulate the tourism-service and hospitality industry against the shocks by developing strategies to promote full information between all stakeholders.

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The Impact of Economic Policy Uncertainty on the Vehicle Miles Traveled (Vmt) in the U.S.

Cited by 8 publications

References 18 publications

The Effects of Economic Policy Uncertainty on Outbound Travel Expenditures

The Effects of Economic Policy Uncertainty on Outbound Travel Expenditures

Clean energy consumption, economic growth, and environmental sustainability: What is the role of economic policy uncertainty?

Do pandemics have an asymmetric effect on tourism in Italy?

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