research
ESG uncertainty, economic growth, and tourism performance in the United States: A wavelet quantile mediation and moderation analysis
Editorial Timeline:
Received:
11.01.2026
Revised (1):
20.03.2026
Revised (2):
29.04.2026
Accepted:
07.06.2026
Abstract
The United States tourism sector faces growing exposure to sustainability-related uncertainty and shifting macroeconomic conditions. This study examines the direct effect of ESG uncertainty (ESGU) on tourist arrivals (TOR) and investigates whether economic growth (ECOG) moderates or mediates this relationship. Using quarterly data for 2002–2025, the analysis applies a wavelet quantile regression framework extended to mediation and moderation, allowing effects to vary across distributional states and short-, medium-, and long-term horizons. The direct effect of ESGU on TOR is nonlinear and horizon-specific: in the short term, ESGU reduces arrivals at the extreme lower quantile (τ = 0.01) but is associated with higher arrivals at the upper tail (τ = 0.95). In the medium term, a positive ESGU effect persists at upper quantiles (τ = 0.60–0.80). Economic growth does not significantly moderate the ESGU-tourism relationship at any quantile or horizon. As a mediator, ESGU affects economic growth positively only at the lower tail in the short term, but negatively at selected quantiles in the medium and long term. Since economic growth supports tourism at medium- and long-term upper and lower tails, the indirect effect of ESGU on tourism through growth is negative and significant in the medium and long term at distributional extremes, though absent in the short term. These findings point to the importance of horizon- and state-specific policy design for managing sustainability-related uncertainty in the U.S. tourism sector.
Keywords:
Tourism, ESG Uncertainty, Economic Growth, Sustainable Development Goal, Moderating and Mediating
References
Adebayo, T. S. (2026). Can ESG uncertainty alter the emissions impact of renewable energy consumption? Statistical evidence from a novel wavelet quantile moderation–mediation regression. Statistical Journal of the IAOS. https://doi.org/10.1177/18747655261445375
Adebayo, T. S., & Özkan, O. (2024). Investigating the influence of socioeconomic conditions, renewable energy and eco-innovation on environmental degradation in the United States: A wavelet quantile-based analysis. Journal of Cleaner Production, 434, 140321. https://doi.org/10.1016/j.jclepro.2023.140321
Antonakakis, N., Dragouni, M., & Filis, G. (2015). How strong is the linkage between tourism and economic growth in Europe? Economic Modelling, 44, 142–155. https://doi.org/10.1016/j.econmod.2014.10.018
Balaguer, J., & Cantavella-Jordá, M. (2002). Tourism as a long-run economic growth factor: The Spanish case. Applied Economics, 34(7), 877–884. https://doi.org/10.1080/00036840110058923
Balli, F., Shahzad, S. J. H., & Salah Uddin, G. (2018). A tale of two shocks: What do we learn from the impacts of economic policy uncertainties on tourism? Tourism Management, 68, 470–475. https://doi.org/10.1016/j.tourman.2018.04.008
Brida, J. G., Matesanz Gómez, D., & Segarra, V. (2020). On the empirical relationship between tourism and economic growth. Tourism Management, 81, 104131. https://doi.org/10.1016/j.tourman.2020.104131
Chen, K.-X., Erzurumlu, Y. O., Gozgor, G., Lau, C. K. M., & Turkkan, M. (2024). The impact of economic uncertainty on corporate ESG performance: Global evidence. Research in International Business and Finance, 72, 102533. https://doi.org/10.1016/j.ribaf.2024.102533
Dimitriadou, A., Gogas, P., & Papadimitriou, T. (2025). Tourism and uncertainty: A machine learning approach. Current Issues in Tourism, 28(14), 2278–2298. https://doi.org/10.1080/13683500.2024.2370380 FRED. (2026). Federal Reserve Economic Data. https://fred.stlouisfed.org/
Gozgor, G., & Ongan, S. (2017). Economic policy uncertainty and tourism demand: Empirical evidence from the USA. International Journal of Tourism Research. https://doi.org/10.1002/jtr.2089
He, J., Xue, B., Chen, L., & Chen, F. (2025). The buffering effect of government subsidies on tourism enterprise performance based on uncertainty shock. Management System Engineering, 4(1), 12. https://doi.org/10.1007/s44176-025-00047-0
He, Y., Pan, Y., Shan, T., & Zhou, Y. (2025). ESG rating disagreement and the cost of equity financing. International Review of Financial Analysis, 107, 104565. https://doi.org/10.1016/j.irfa.2025.104565
Karakuş, Y., & Erkılıç, E. (2024). The role of destination carrying capacity within the framework of flow theory. Tourist Destination, 2(1), 13–23. https://doi.org/10.5281/zenodo.13331419
Katircioglu, S. (2009). Tourism, trade and growth: The case of Cyprus. Applied Economics, 41(21), 2741–2750. https://doi.org/10.1080/00036840701335512
Katircioglu, S. T. (2009). Revisiting the tourism-led-growth hypothesis for Turkey using the bounds test and Johansen approach for cointegration. Tourism Management, 30(1), 17–20. https://doi.org/10.1016/j.tourman.2008.04.004
Kazakova, A., & Kim, I. (2021). Geopolitical-risk and economic policy-uncertainty impacts on tourist flows from neighboring countries: A wavelet analysis. Sustainability, 13(24), 13751. https://doi.org/10.3390/su132413751
Liu, Y., Kumar, S., Liu, H., Li, S., & Zhou, Z. (2025). ESG performance, digital transformation, and green innovation. Humanities and Social Sciences Communications, 12(1), 1739. https://doi.org/10.1057/s41599-025-06027-9
Lohmann, C., Möllenhoff, S., & Lehner, S. (2026). ESG rating disagreement and the size of the investable universe under ESG consensus rules. Corporate Social Responsibility and Environmental Management, 33(2), 2649–2664.
Nasraoui, M., Ajina, A., & Herve, F. (2026). Economic policy uncertainty, ESG practices, and investment inefficiency in U.S. firms. Economic Modelling, 155, 107414. https://doi.org/10.1016/j.econmod.2025.107414
Nawaz, A., & Su, C. W. (2026). Is ESG uncertainty undermining green investment along the global financial path to sustainable development? Economic Analysis and Policy, 91, 192–205. https://doi.org/10.1016/j.eap.2026.03.014 NOAA Sea Grant. (2024). Coastal resilience programs. National Oceanic and Atmospheric Administration. OECD. (2025). Building strong and resilient tourism destinations (OECD Tourism Papers). https://doi.org/10.1787/a57c343d-en
Ongan, S., Gocer, I., & Işık, C. (2025). Introducing the new ESG-based Sustainability Uncertainty Index (ESGUI). Sustainable Development, 33(3), 4457–4467. https://doi.org/10.1002/sd.3351 OWID. (2025). Our World in Data. https://ourworldindata.org
Papagianni, E., Evgenidis, A., Tsagkanos, A., & Megalooikonomou, V. (2024). Tourism demand in the face of geopolitical risk: Insights from a cross-country analysis. Journal of Travel Research, 63(8), 2094–2119. https://doi.org/10.1177/00472875231206539
Paudel, T., Li, W. Y., Tiwari, S., & Dhakal, T. (2025). Exploring the influencing factors and arrival patterns of inbound tourism in Nepal. Tourism Planning & Development, 22(3), 408–427. https://doi.org/10.1080/21568316.2024.2357287 PU. (2026). Economic Policy Uncertainty Index. https://www.policyuncertainty.com/
Qamruzzaman, M., Alomair, A., Al Naim, A. S., & Hossain, R. R. (2025). ESG-based sustainability uncertainty and green growth in the US and UK: Do human capital and technology matter? Quality & Quantity. https://doi.org/10.1007/s11135-025-02525-9
Romão, J. (2020). Tourism, smart specialisation, growth, and resilience. Annals of Tourism Research, 84, 102995. https://doi.org/10.1016/j.annals.2020.102995
Seghir, G. M., Mostéfa, B., Abbes, S. M., & Zakarya, G. Y. (2015). Tourism spending-economic growth causality in 49 countries: A dynamic panel data approach. Procedia Economics and Finance, 23, 1613–1623. https://doi.org/10.1016/S2212-5671(15)00402-5
Sun, Z., Liu, L., Pan, R., Wang, Y., & Zhang, B. (2025). Tourism and economic growth: The role of institutional quality. International Review of Economics & Finance, 98, 103913. https://doi.org/10.1016/j.iref.2025.103913 U.S. Department of Commerce. (2022). National travel and tourism strategy. International Trade Administration. U.S. Economic Development Administration. (2022). Travel, tourism, and outdoor recreation. U.S. Department of Commerce.
Xu, W., & Xie, W. (2025). Supply chain finance and tourism enterprise resilience in the context of economic policy uncertainty. Finance Research Letters, 86, 108349. https://doi.org/10.1016/j.frl.2025.108349
Yıldırım, H., Tekbaş, M., İslamoğlu, A. E., & Doğan, M. (2025). From green goals to grey risks: How ESGUI shapes finance and growth. Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 16(32), 1043–1065. https://doi.org/10.36543/kauiibfd.2025.038
Zhang, Y., Huam, H. T., & Zhang, Z. R. (2025). Sustainable development in the tourism sector: The impact of ESG performance on operational efficiency. Sustainable Futures, 10, 100923. https://doi.org/10.1016/j.sftr.2025.100923
Declarations & Ethical Disclosures
Conflict of Interest:
The authors declare no conflict of interest.
Funding Statement:
This research received no external funding.