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Economic Growth, Tourism Arrivals and Climate Change

Author

Listed:
  • Nuno Carlos Leitão

    (Polytechnic Institute of Santarém, ESGTS, Portugal.)

  • Muhammad Shahbaz

    (COMSATS Institute of Information Technology, Lahore, Pakistan.)

Abstract

This paper investigates the link between economic growth, tourism arrivals and climate change. In this research, we formulate three equations. The first equation evaluates the correlation between economic growth and tourism arrivals. The second model considers carbon dioxide emissions and tourism arrivals. Finally, we consider the determinants of tourism arrivals. We selected the period 1990-2009 for European economy using the panel data. The equation that evaluates economic growth demonstrates that tourist arrivals, energy consumption, carbon dioxide emissions and openness trade are positively correlated with economic growth. A large number of studies consider that there is a positive correlation between tourism and climate change. However, some studies show that there is an alternative hypothesis i.e. a negative association between tourist arrivals and climate change. Our results are in this direction. When we apply the fixed effects and GMM-system, the results show that income per capita, and energy consumption present a positive impact on CO2 emissions. The econometric results also demonstrate that tourism arrivals and squared income per capita are negatively correlated with CO2 emissions. The equation that analyses the determinants of tourism arrivals demonstrates that income per capita, openness trade and energy consumption present a positive effect on tourism arrivals.

Suggested Citation

  • Nuno Carlos Leitão & Muhammad Shahbaz, 2016. "Economic Growth, Tourism Arrivals and Climate Change," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 35-43, March.
  • Handle: RePEc:ijr:beejor:v:4:y:2016:i:41:p:35-43
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    References listed on IDEAS

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    Cited by:

    1. Sayef Bakari, 2017. "The Three-Way Linkages Between Export, Import And Economic Growth: New Evidence From Tunisia," Journal of Smart Economic Growth, , vol. 2(3), pages 13-53, December.
    2. Suhel & Abdul Bashir, 2018. "The role of tourism toward economic growth in the local economy," Economic Journal of Emerging Markets, Universitas Islam Indonesia, Department of Economics, vol. 10(1), pages 32-39, April.
    3. Uzma Khan, 2020. "Does Tourism Boost Economic Growth: Evidence from Italy," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 214-222.
    4. Attila Jambor & Nuno Carlos Leitao, 2017. "Economic Growth and Sustainable Development: Evidence from Central and Eastern Europe," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 171-177.
    5. Abdulkarim K. Alhowaish, 2016. "Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries," Sustainability, MDPI, Open Access Journal, vol. 8(7), pages 1-10, June.

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    More about this item

    Keywords

    Economic Growth; Tourism Arrivals; Climate Change; Energy Consumption;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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