The Impact of Tourism, Economic Growth, and Foreign Direct Investment on Carbon Dioxide Emissions in the Brics Countries

Since the 2000s, the BRICS countries have been extensively researched due to their increasing economic growth rates, attractiveness for foreign direct investment (FDI), and their influence on the global economic system. BRICS countries, which constitute 24% of the global gross domestic product (GDP), increased their influence on the global economy with a growth rate of 6.21% while causing environmental degradation due to excessive use of resources. The rise in carbon dioxide (CO2) emissions is a significant indicator of environmental deterioration. Studies analyzing the relationship between tourism and economic indicators are relatively rare, despite the abundance of research on the impact of economic growth on carbon emissions. To fill this gap in the literature, this study was conducted. Using a panel data analysis approach, this study aims to examine the impact of tourism, economic growth, and FDI on carbon emissions in BRICS countries between 1995 and 2020. The results from the Westerlund cointegration test suggest a long-term relationship between CO2 emissions, GDP, FDI, and international tourist arrivals, indicating a cointegration relationship. According to the panel Dynamic Ordinary Least Squares (DOLS) test statistic, all the coefficients are statistically significant at either the 1% level or the 5% level. The DOLS test indicates that a one-unit increase in GDP leads to a 0.10% rise in CO2 emissions. Based on the results of the research, managerial implications are discussed and suggestions for future research are presented.