Green Innovation and Tourism Demand: The Moderating Role of Sustainable Development Goals ( SDGs )

ABSTRACT This study examines the interaction between Green Innovation (GI) and Tourism, with particular attention to the moderating influence of the Sustainable Development Goals (SDGs). Drawing on panel data from seven advanced economies—Australia, France, Germany, Italy, Japan, Switzerland, and the United States—over the period 2002–2020, the analysis applies IV‐GMM and panel quantile regression to address heterogeneity, endogeneity, and distributional asymmetries. Findings indicate that GI exerts a consistently positive and significant effect on tourism demand, highlighting its role in improving destination competitiveness through sustainable technologies and environmentally friendly practices. While SDG alone exhibits a negative association with tourism—reflecting transitional costs of compliance—its interaction with GI significantly amplifies tourism, suggesting that innovation aligned with SDG priorities generates synergistic benefits. Additional findings reveal that Economic Growth (EG) and Population Size (POP) remain robust drivers of tourism demand, whereas Institutional Quality (IQ) shows context‐dependent effects. This research contributes to the literature in three ways. First, it offers a theoretical integration of GI, SDGs, and tourism within a unified framework. Second, it advances methodology by combining linear and non‐linear estimations to capture both symmetric and asymmetric relationships. Third, it provides practical insights for policymakers and industry stakeholders, emphasizing the importance of eco‐innovation and SDG alignment for fostering sustainable, competitive, and resilient tourism sectors in the context of climate change and resource constraints.