EXAMINING THE NEXUS BETWEEN TOURISM INVESTMENTS, RENEWABLE ENERGY CONSUMPTION AND CO2 EMISSIONS IN INDONESIA (original) (raw)
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Jurnal Ekonomi & Studi Pembangunan
Tourism is one of the most important sectors of the Indonesian economy because it is one of the mainstay sectors in obtaining foreign exchange, which is expected to increase economic growth. However, along with its positive impact on economic growth, the expansion of the tourism industry is also a significant contribution to rising CO2 emissions and energy consumption. This study focuses on assessing the impact of the tourism sector as proxied by the number of international tourist visits on GDP per capita and the environment as seen from CO2 emissions and total energy consumption. This study uses data covering 44 years (1974 - 2018). The Nonlinear Autoregressive Distributed Lag (NARDL) method was used in this study. The results indicate that an increase in total foreign tourist arrivals has a positive impact on real GDP per capita and total energy consumption in the short term, whereas a decrease has a beneficial effect on reducing real GDP per capita, CO2 emissions, and total ener...
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The tourism industry has long been accused of being the major driver of global warming as a result of the size of the industry and its subsequent high energy consumption, most of which comes from sources that emit carbon dioxide. However, in spite of the criticism directed towards tourism due to its negative effects on the environment, there is a scarcity of research that has aimed to ascertain its impact on the environment, thus revealing the existence of a gap in the literature. The current study uses a dynamic GMM model for 38 OECD countries from 2008 to 2019 for the purpose of filling the gap in the literature by investigating the effects of tourism development on the environment, as well as ascertaining the role of renewable energy in mitigating environmental impact. Unlike past studies that have alluded to the fact that tourism development exacerbates the emissions of carbon dioxide and hence global warming, the current research shows that in the OECD countries, tourism does not have any significant link with greenhouse gas emissions. This is because OECD nations have long started to shift from the use of fossil fuels to renewable sources of energy that do not exacerbate greenhouse gas emissions. However, the current research concurs with the findings of past studies that renewable energy consumption significantly decreases greenhouse gas emissions. The use of renewable energy sources instead of fossil fuels should continue to be encouraged in all nations for the purpose of achieving the carbon neutrality goal of the United Nations.
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Nowadays, tourism plays an important role in most countries as the number of international tourists has considerably expanded (United Nations Environment Program 2011). The tourism sector represents an important part of the world gross domestic product (GDP), employs directly and indirectly an important proportion of the global work force, represents an important share in total exports, and foreign direct investment (FDI) represents an important source of world's tourism investment. The expansion of this sector resulted in an increase in fossil energy consumption and in important green house gas (GHG) emissions. However, investments in energy efficiency and renewable energy related to the touristic sector seem generating significant returns within a short payback
Travel and tourism have glimpsed a significant and promising implication for economic development. Despite the commendatory implication of tourism, it levies a stringent environmental cost such as environmental degeneration. Hence, this study will incorporate the 18 countries out of the top 20 travel and tourism contributors to economic growth to assess the progressive correlation between tourist arrival, economic growth, energy consumption, and oil consumption on carbon emission by applying panel ARDL spanning from 1995 to 2019. The outcome of the panel ARDL reveals that both periods have witnessed that the endogenous variables have a substantial and positive impact on environmental degradation except for tourism as it indicates −0.22 and −0.48% in the long and short run, having a rate of adjustment as −0.52 toward the equilibrium. The simultaneous quantile regression reveals that in the 50 and 75 percentiles, the effect of tourism has a negative impact, which contradicts the PMG findings. These determinations suggest that the policymakers look for more manageable and environmentally sound tourism and economic growth procedures to safeguard the sustainable environment in the studied countries.
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