Efficacy of Gain Index in Predicting the Economic Impacts of Climate Change to Tourism Receipts in the Mediterranean Basin

Efficacy of Gain Index in Predicting the Economic Impacts of Climate Change to Tourism Receipts in the Mediterranean Basin

This study tests the efficacy of Global Adaptation Institute (GAIN) Index, which summarizes a country's vulnerability to climate change and its readiness to improve resilience, in estimating the economic impacts of climate change to tourism. We employ panel cointegration and panel DOLS methods for sixteen countries (Albania, Croatia, Cyprus, Egypt, France, Greece, Israel, Italy, Lebanon, Malta, Morocco, Slovenia, Spain, Syrian Arab Republic, Tunisia and Turkey) that have a coastline on the Mediterranean Sea. The results indicate that there is a cointegration relation in the model, and tourist arrivals depend negatively on vulnerability and economic readiness and depend positively on governances and social readiness.