Economic Growth, Energy Mix, and Tourism-Induced EKC Hypothesis: Evidence from Top Ten Tourist Destinations (original) (raw)
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Sustainability
This paper analyzes the legitimacy of the Environmental Kuznets Curve (EKC) hypothesis for a group of seven (G7) countries over the period 1995–2015. In addition to testing the EKC speculation, the authors also would like to understand the ways in which increases in renewable energy consumption and the international tourism receipt affect the CO2 emissions in G7 countries, because the energy and tourism sectors may have considerable direct impacts on CO2 emissions. In this investigation, a panel bootstrap cointegration test and an augmented mean group (AMG) estimator were applied. The empirical findings indicate that the tourism-induced EKC hypothesis is valid only for France. Additionally, it was detected that a rise in renewable energy consumption has a negative (reduction) impact on CO2 emissions in France, Italy, the UK, and the US. However, an increase in the receipt of international touristm has a positive (additional) impact on Italy’s CO2 emissions. Hence, this country’s dec...
Environmental Science and Pollution Research, 2019
This paper examines the relationship between carbon emissions and international tourism growth through the channels of globalization, energy consumption, and real income via testing the environmental Kuznets curve over the periods of 1995 to 2014 for 15 selected tourism destination states that prioritized tourism as a means of maximizing economic growth. Using the panel data analysis, results confirm globalization-tourism-induced EKC hypothesis for tourist destination states. This implies international tourism growth and carbon emissions, through the channels of energy consumption, globalization, and real income, are in a long-term equilibrium relationship. International tourism and squared term of real income have an inverse significant effect on carbon emission level, while energy consumption, globalization, and real income without squared term exert positive and significant effects on carbon emission level in the long-run. Thus, globalization-tourism-induced EKC hypothesis is suggested with credible policy suggestions in the case of tourist destination states.
To investigate the relationship between Tourism Development, Energy Consumption and Environmental Kuznets Curve. To construct the tourism development index by principal component analysis. Validate the environmental Kuznets curve in the panel of 34 developed and developing countries. Established tourism e induced emissions, energy e induced emissions, and investment e induced emissions. Established growth led tourism, investment led tourism, and health expenditures led tourism development in a region. a b s t r a c t The study investigates the relationship between economic growth, carbon dioxide emissions, tourism development, energy demand, domestic investment and health expenditures with an aim to test the validity of the Environmental Kuznets Curve (EKC) hypothesis in the panel of three diversified World's region including East Asia & Pacific, European Union and High income OECD and Non-OECD countries. The study covers the period of last nine years i.e. 2005e2013. The study used the principal component analysis (PCA) to construct tourism development index which is the amalgamation of number of tourists' arrivals, tourism receipts and international tourism expenditures. The results validate the inverted U-shaped relationship between carbon emissions and per capita income in the region. The results further substantiate the following causal relationships i.e. i) tourism-induced carbon emissions, ii) energy-induced emissions, iii) investment e induced emissions, iv) growth led tourism, v) investment led tourism and vi) health led tourism development in the region.
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.
Environmental Science and Pollution Research, 2019
The importance of sustainable tourism in environmental literature is well documented, while there is a need to explore its different socioeconomic and environmental factors that are helpful to promote sustainable development across countries. The objective of the study is to investigate the relationship between international tourism (ITOUR), energy demand (ED), carbon dioxide emissions (CO 2), and economic growth (EG) by using a panel data of top 10 tourism-induced countries for the period of 1995-2016. The findings confirmed the Environmental Kuznets Curve (EKC) hypothesis in the panel of top 10 countries. Moreover, the results show that FDI inflows negatively influenced natural environment in the form of high mass carbon emissions, which supported "pollution haven hypothesis (PHH)." The energy demand escalates carbon emissions across countries. The study confirmed the feedback relationship between (i) tourism income (TI) and ED, and (ii) CO 2 emissions and international tourism departures (ITD), while study supported the growth-led tourism income across countries. The study concludes that government(s) should have to focus on ecotourism policies and energy resources in a way to mitigate carbon emissions that is imperative for sustainable development across countries.
Environmental Science and Pollution Research, 2019
The study examined the long-run and causal relationship between international tourism receipts (ITR), social distribution, FDI inflows, and carbon (CO2) emissions to verify the different alternative and plausible hypotheses, i.e., environmental Kuznets curve (EKC) hypothesis, "pollution haven" hypothesis (PHH), and "resource efficiency" (REF) hypothesis, in a panel of Group of Seven (G-7) countries for the period of 1995-2015. The study employed panel random effect (RE) regression and panel causality test for robust inferences. The results show that ITR and FDI inflows increase CO2 emissions to verify PHH while government education expenditures (GEE) decrease CO2 emissions to substantiate the REF hypothesis across countries. The results validate the inverted U-shaped EKC relationship between CO2 emissions and economic growth (EG) with the turning point of US$30,900. In addition, GEE increase ITR while healthcare expenditures (HEXP) decrease ITR, which partially supported the REF hypothesis in a panel of countries. The impact of income inequality (INEQ) on ITR is positive at current time period while at later stages INEQ declines ITR that supported an inverted U-shaped relationship between them. The causality estimates confirm the bidirectional relationship between ITR and EG, while there is unidirectional casualty running from (i) ITR, EG, FDI inflows, and GEE to CO2 emissions, (ii) FDI inflows to ITR, (iii) GEE to EG, (iv) EG to social expenditures, (v) income inequality to health expenditures, (vi) social expenditures (SEXP) to ITR, and (vii) INEQ to ITR. There is no causal relationship found between ITR and EG during the study time period. The findings endorse the need for efficient resource spending, sustainable tourism (STR), and rational income distribution to improve environmental sustainability agenda in a panel of G-7 countries.
International Journal of Finance & Economics, 2020
This article examines the relationship between carbon emissions and international tourism growth through the channels of globalization and real income via testing the Environmental Kuznets curve (EKC) over the periods of 1995 to 2016 for 16 selected tourism island states (TIS) that prioritized tourism as a means of maximizing economic growth. Using the dynamic panel-based pooled mean group method of autoregressive distributed lag, results confirm globalization-tourism-induced EKC hypothesis for TIS. This implies international tourism growth and carbon emissions, through the channels of globalization and real income are in a long-term equilibrium relationship. International tourism and squared term of real income have an inverse significant effect on carbon emission level, while globalization and real income without squared term exert positive and significant effects on carbon emissions level in the long run. Results of the direction of causality tests show that there is a two-way causality between globalization and carbon emissions, while result also shows one-way causality running from international tourism to carbon emissions level in the long-run in the case of the TIS. Thus, globalizationtourism-induced EKC hypothesis is suggested in the case of TIS.
Revisiting the environmental Kuznets curve hypothesis in a tourism development context
This study investigates empirically an extended version of the Environmental Kuznets Curve model that controls for tourism development. We find that international tourist arrivals into Turkey alongside income, squared income and energy consumption, cointegrate with CO2 emissions. Tourist arrivals, growth, and energy consumption exert a positive and significant impact on CO2 emissions in the long-run. Our results provide empirical support to EKC hypothesis showing that at exponential levels of growth, CO2 emissions decline. The findings suggest that despite the environmental degradation stemming from tourism development, policies aimed at environmental protection should not be pursued at the expense of tourism-led growth.
Examining the relationship between tourism and CO2 emissions: evidence from APEC region
An International Journal of Tourism and Hospitality (Anatolia), 2022
The paper investigates the relationship between tourism, energy consumption, trade openness, economic growth, and CO2 emissions for 20 economies of the APEC region from 1995 to 2017. This paper employs cross-sectional dependence with heterogeneous panel estimation techniques. The data confirms cross-sectional dependence, and the CIPS panel unit root test shows that the variables are stationary at their first differences. The Westerlund panel cointegration test affirms a long-run relationship among the variables. Tourism and trade openness have significant positive effects on CO2 emissions while economic growth and energy consumption adversely affect CO2 emissions in the long-run. The panel non-causality test reveals that there is a one-way causality running from tourism to CO2 emissions and economic growth to CO2 emissions.
Economic Research-Ekonomska Istraživanja , 2022
The aim of this study is to examine the impact of international tourism on economic growth and carbon emissions by using the Panel VAR model in selected OECD countries. By using yearly data for the periods of 1995 and 2020, we examine the dynamic rela- tionship between international tourism, economic growth, and carbon emissions using the Granger causality test and impulse responses analysis. Although we could not determine the pres- ence of a causal link between the variables using the Granger causality test, impulse responses analysis confirmed that responses of carbon emissions and economic growth to an unex- pected international tourism shock are positive and significant. On the other hand, impulse responses analysis results show that responses of carbon emissions and economic growth to unex- pected international tourism are positive and significant. The empirical findings also indicated that the responses of carbon emissions to an unexpected international tourism shock are higher than the responses of economic growth to an unexpected international tourism shock and these findings indicate that the negative impact of international tourism on environmental quality is greater than its positive impact on economic growth. Policymakers should take actions and measures to reduce the impact of international tourism on environmental deterioration. Improvements and dissemination of eco-friendly technologies in all tourism activities may help to reduce the negative impact of international tourism on carbon emissions.