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The Effects of Tourism, Economic Growth and Renewable Energy on Carbon Dioxide Emissions

In: Strategies in Sustainable Tourism, Economic Growth and Clean Energy


  • Nuno Carlos Leitão

    (Évora University
    Lisbon University)

  • Daniel Balsalobre-Lorente

    (University of Castilla-La Mancha)


This study discusses the relationship between tourism demand and carbon dioxide (CO2) emissions, as well as the correlation between renewable energy and CO2 emissions. To achieve this, a robust panel methodology is employed for EU-28 countries. First, preliminary descriptive summary statistics and correlation analysis. Second, unit root tests in panel data (Levin et al. in J Econom, 108:1–24, 2002; ADF–Fisher Chi-square, and Phillips–Perron) to establish stationarity traits of the outlined variables Subsequently, we use Pedroni (Rev Econom Stat 83(4):727–731, 2001, Econom Theory 20(03):597–625, 2004), a panel data Random Effects (RE), DOLS (Panel Dynamic Least Squares) and panel Granger causality test, as econometric methodologies for long-run equilibrium relationship and detection of causality flow, respectively. The econometric empirical results confirm that there exists an Inverted-U linkage between economic growth and environmental degradation, which validates the Environmental Kuznets Curve (EKC) hypothesis for EU-28 countries. Furthermore, empirical results show a negative association between tourist arrivals and CO2 emissions, making it possible to infer that the tourism sector accentuates climate change. Regarding renewable energy, the results validate the negative relationship between this variable and carbon dioxide emissions, which is in line with previous studies. This result validates the position of the United Nation Sustainable Development Goals (UN-SDG’s) of access to clean energy (renewable energy) and mitigation of climate change issues. This empirical study also presents conclusions that are useful for policymakers and stakeholders.

Suggested Citation

  • Nuno Carlos Leitão & Daniel Balsalobre-Lorente, 2021. "The Effects of Tourism, Economic Growth and Renewable Energy on Carbon Dioxide Emissions," Springer Books, in: Daniel Balsalobre-Lorente & Oana M. Driha & Muhammad Shahbaz (ed.), Strategies in Sustainable Tourism, Economic Growth and Clean Energy, chapter 0, pages 67-87, Springer.
  • Handle: RePEc:spr:sprchp:978-3-030-59675-0_4
    DOI: 10.1007/978-3-030-59675-0_4

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    More about this item


    CO2 emissions; Tourism arrivals; Renewable energy; Panel data;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Z30 - Other Special Topics - - Tourism Economics - - - General


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