Carbon mitigation policy and international tourism. Does the European Union Emissions Trading System hit international tourism from member states?

This study investigated the influence of the European Union Emissions Trading System on international travel. The findings indicate that during its first and second phases, the European Union Emissions Trading System resulted in a significant decline in the number of visitor arrivals from member states. Transportation expenditure is an important factor. With the rise in energy prices, visitors experience a significant increase in transportation expenditures within member states. The System has had heterogeneous effects on international tourism across different distances. Regarding rising travel costs, travelers tend to select international destinations at shorter distances. Consequently, the System discourages long-distance international travel and boosts short-haul travel.