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Economic Growth, Energy Mix, and Tourism-Induced EKC Hypothesis: Evidence from Top Ten Tourist Destinations

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  • Md. Hasanur Rahman

    (Department of Economics, Sheikh Fazilatunnesa Mujib University, Jamalpur 2000, Bangladesh
    Department of Economics, Comilla University, Cumilla 3506, Bangladesh)

  • Liton Chandra Voumik

    (Department of Economics, Noakhali Science and Technology University, Noakhali 3814, Bangladesh)

  • Md. Jamsedul Islam

    (Department of Tourism and Hospitality Management, Noakhali Science and Technology University, Noakhali 3814, Bangladesh)

  • Md. Abdul Halim

    (Department of Tourism and Hospitality Management, Leading University, Sylhet 3112, Bangladesh)

  • Miguel Angel Esquivias

    (Department of Economics, Airlangga University, Surabaya 50115, Indonesia)

Abstract

The tourism sector makes a sizable contribution to a country’s gross domestic product, increasing employment opportunities, foreign currency earnings, and economic diversification strategies. This paper uses the Environmental Kuznets Curve (EKC) model to analyze the effects of tourism on the environment in the world’s top 10 tourist countries from 1972 to 2021. Panel cointegration and second-generation unit root tests are suggested due to the presence of cross-sectional dependence and slope heterogeneity. A cross-sectional-autoregressive-distributed lag (CS-ARDL) model is applied to evaluate the marginal influence of environmental variables other than tourism on carbon dioxide (CO 2 ) emissions. These variables include fossil fuels, renewable energy, and nuclear energy. For the purpose of testing robustness, both the augmented mean group (AMG) and the common correlated effects mean group (CCEMG) estimators are employed. The CS-ARDL supports the EKC hypothesis in the short run and long run, but it is not significant in the short run. The existence of EKC demonstrates that rising income leads to fewer CO 2 emissions. All forms of environmental degradation can be accelerated by using fossil fuels. The results of this study indicate that CO 2 emissions can be reduced by using renewable energy and nuclear energy. A rise in tourism activity has a positive impact on environmental quality. The best-attended tourist spots around the globe are those that, in the long run, implement clean energy-related technology and promote ecotourism.

Suggested Citation

  • Md. Hasanur Rahman & Liton Chandra Voumik & Md. Jamsedul Islam & Md. Abdul Halim & Miguel Angel Esquivias, 2022. "Economic Growth, Energy Mix, and Tourism-Induced EKC Hypothesis: Evidence from Top Ten Tourist Destinations," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16328-:d:995839
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    Cited by:

    1. Rifat Nahrin & Md. Hasanur Rahman & Shapan Chandra Majumder & Miguel Angel Esquivias, 2023. "Economic Growth and Pollution Nexus in Mexico, Colombia, and Venezuela (G-3 Countries): The Role of Renewable Energy in Carbon Dioxide Emissions," Energies, MDPI, vol. 16(3), pages 1-17, January.
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    3. Liton Chandra Voumik & Shohel Md. Nafi & Festus Victor Bekun & Murat Ismet Haseki, 2023. "Modeling Energy, Education, Trade, and Tourism-Induced Environmental Kuznets Curve (EKC) Hypothesis: Evidence from the Middle East," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    4. Grzegorz Zimon & Dulal Chandra Pattak & Liton Chandra Voumik & Salma Akter & Funda Kaya & Robert Walasek & Konrad Kochański, 2023. "The Impact of Fossil Fuels, Renewable Energy, and Nuclear Energy on South Korea’s Environment Based on the STIRPAT Model: ARDL, FMOLS, and CCR Approaches," Energies, MDPI, vol. 16(17), pages 1-21, August.
    5. Liton Chandra Voumik & Mohammad Iqbal Hossain & Md. Hasanur Rahman & Raziya Sultana & Rahi Dey & Miguel Angel Esquivias, 2023. "Impact of Renewable and Non-Renewable Energy on EKC in SAARC Countries: Augmented Mean Group Approach," Energies, MDPI, vol. 16(6), pages 1-19, March.
    6. Liton Chandra Voumik & Md. Hasanur Rahman & Shohel Md. Nafi & Md. Akter Hossain & Abdul Rahim Ridzuan & Nora Yusma Mohamed Yusoff, 2023. "Modelling Sustainable Non-Renewable and Renewable Energy Based on the EKC Hypothesis for Africa’s Ten Most Popular Tourist Destinations," Sustainability, MDPI, vol. 15(5), pages 1-19, February.
    7. Liton Chandra Voumik & Salma Akter & Mohammad Ridwan & Abdul Rahim Ridzuan & Amin Pujiati & Bestari Dwi Handayani & J. S. Keshminder & Mohamad Idham Md Razak, 2023. "Exploring the Factors behind Renewable Energy Consumption in Indonesia: Analyzing the Impact of Corruption and Innovation using ARDL Model," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 115-125, September.

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