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Exploring the nexus between tourism development and environmental quality: Role of Renewable energy consumption and Income

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  • Tian, Xian-Liang
  • Bélaïd, Fateh
  • Ahmad, Najid

Abstract

Tourism appears as a catalyst for growth and development; however, recent studies have documented that this sector heavily depends on energy sector and as a consequence, entire tourism industry has been blamed for CO2 emissions. This study aims to investigate the impact of tourism develop, renewable energy and real GDP on CO2 emissions for G20 economies during the period of 1995-2015. In the presence of panel unit root, Pedroni and Kao methods confirm long-run cointegration among variables. FMOLS results show that a 1% increase in tourism development decreases pollution emissions by 0.05% in long run. The results show that the increase in renewable energy consumption reduces pollution emissions. A 1% increases in renewable energy reduces pollution emissions by 0.15% in long run. There was an inverted U-shaped relation between pollution and real GDP in long run confirming the validity of environmental Kuznets curve. Paper concludes that tourism development can be driving force for CO2 emissions reduction.

Suggested Citation

  • Tian, Xian-Liang & Bélaïd, Fateh & Ahmad, Najid, 2021. "Exploring the nexus between tourism development and environmental quality: Role of Renewable energy consumption and Income," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 53-63.
    • Handle: RePEc:eee:streco:v:56:y:2021:i:c:p:53-63
    DOI: 10.1016/j.strueco.2020.10.003
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    Cited by:

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    2. Rafał Nagaj & Brigita Žuromskaitė, 2021. "Tourism in the Era of Covid-19 and Its Impact on the Environment," Energies, MDPI, vol. 14(7), pages 1-18, April.
    3. Geoffrey Ssebabi Mutumba & Tomson Odongo & Francis Nathan Okurut & Vincent Bagire & Livingstone Senyonga, 2022. "Renewable and non-renewable energy consumption and economic growth in Uganda," SN Business & Economics, Springer, vol. 2(7), pages 1-28, July.
    4. Ahmad, Najid & Youjin, Liu & Žiković, Saša & Belyaeva, Zhanna, 2023. "The effects of technological innovation on sustainable development and environmental degradation: Evidence from China," Technology in Society, Elsevier, vol. 72(C).
    5. Sofi, Arfat Ahmad & Bhat, Mohammad Younus & Ahmad, Laraib & Aara, Ruhi Refath & Aswani, RS, 2022. "Renewable energy and transitioning towards sustainable tourism: Inferences from kernel density and nonparametric approach," Renewable Energy, Elsevier, vol. 193(C), pages 963-975.
    6. Zhiqiang Zhang & Ling Li & Qiuyu Guo, 2022. "The Interactive Relationships between the Tourism-Transportation-Ecological Environment System of Provinces along the ‘Silk Road Economic Belt’ in China," Sustainability, MDPI, vol. 14(5), pages 1-33, March.
    7. Osorio, Pilar & Cadarso, María-Ángeles & Tobarra, María-Ángeles & García-Alaminos, Ángela, 2023. "Carbon footprint of tourism in Spain: Covid-19 impact and a look forward to recovery," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 303-318.
    8. Awijen, Haithem & Belaïd, Fateh & Zaied, Younes Ben & Hussain, Nazim & Lahouel, Béchir Ben, 2022. "Renewable energy deployment in the MENA region: Does innovation matter?," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    9. Haider Mahmood & Muhammad Shahid Hassan & Soumen Rej & Maham Furqan, 2023. "The Environmental Kuznets Curve and Renewable Energy Consumption: A Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 279-291, May.
    10. Hu, Kexiang & Sinha, Avik & Tan, Zhixiong & Shah, Muhammad Ibrahim & Abbas, Shujaat, 2022. "Achieving energy transition in OECD economies: Discovering the moderating roles of environmental governance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    11. Buket Altinoz & Alper Aslan, 2022. "New insight to tourism-environment nexus in Mediterranean countries: evidence from panel vector autoregression approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 12263-12275, October.
    12. Kiara Riojas-Díaz & Ricardo Jaramillo-Romero & Fátima Calderón-Vargas & David Asmat-Campos, 2022. "Sustainable Tourism and Renewable Energy’s Potential: A Local Development Proposal for the La Florida Community, Huaral, Peru," Economies, MDPI, vol. 10(2), pages 1-17, February.
    13. Hailiang, Zeng & Chau, Ka Yin & Waqas, Muhammad, 2023. "Does green finance and renewable energy promote tourism for sustainable development: Empirical evidence from China," Renewable Energy, Elsevier, vol. 207(C), pages 660-671.
    14. Jianquan Guo & Xinwei Cai, 2023. "Do transportation and tourism development really contribute to China's economy? evidence from renewable and non-renewable energy consumption," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 7189-7214, July.

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    More about this item

    Keywords

    Tourism development; Carbon emissions; Renewable energy; G20; Economic growth;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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