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Climate Risk, Economic Stability, and Tourism - A Cross-Sectionally Dependent Heterogeneous Panel Causality Analysis

Author

Listed:
  • Wanhai You
  • Yue Zhang
  • Chien-Chiang Lee

    (School of Economics and Management, Nanchang University, China.)

Abstract

This research is designed to study the Granger causality between climate risk, economic stability, and tourism. It uses the heterogeneous panel Granger approach developed by Dumitrescu and Hurlin (2012). This approach is particularly useful for data with cross-sectional dependence and heterogeneity. The findings suggest that, on the one hand, tourism development will be beneficial to national economic stability and, on the other hand, it will contribute to the national climate crisis.

Suggested Citation

  • Wanhai You & Yue Zhang & Chien-Chiang Lee, 2021. "Climate Risk, Economic Stability, and Tourism - A Cross-Sectionally Dependent Heterogeneous Panel Causality Analysis," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 2(2), pages 1-5.
    • Handle: RePEc:ayb:jrnerl:36
    DOI: 2021/10/13
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    References listed on IDEAS

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    1. Ons Abbes & Pr. Abdessatar Ati & Dr. Fabienne Boudier, 2019. "Specialization of Emerging Countries and Economic Stability," Business and Economic Research, Macrothink Institute, vol. 9(1), pages 200-227, March.
    2. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    3. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    4. Frederico Neto, 2003. "A new approach to sustainable tourism development: Moving beyond environmental protection," Natural Resources Forum, Blackwell Publishing, vol. 27(3), pages 212-222, August.
    5. Brantley Liddle, 2021. "The Effect of Environmental Stringency on End-Use Energy Prices - Evidence From High-Income Country Panels," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 1(1), pages 1-4.
    6. Henry He Huang & Joseph Kerstein & Chong Wang, 2018. "The impact of climate risk on firm performance and financing choices: An international comparison," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(5), pages 633-656, July.
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    Cited by:

    1. Wang, Jun-Zhuo & Narayan, Paresh Kumar & Gunadi, Iman & Hermawan, Danny, 2025. "Climate change and financial risk: Is there a role for central banks?," Energy Economics, Elsevier, vol. 144(C).
    2. Charbel Bassil & Ghialy Yap, 2024. "Can immigration moderate the adverse effects of political instability on international tourism? A case study of Australia," Tourism Economics, , vol. 30(2), pages 477-497, March.

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    More about this item

    Keywords

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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