The effect of tourism investment on tourism development and CO2 emissions: empirical evidence from the EU nations

Abstract

The objective of this study is to investigate the effect of tourism investment on tourism development and CO₂ emissions in a panel of 28 EU countries using annual data from 1990 to 2013. The empirical results from a panel cointegration test confirm the presence of long-run equilibrium relationship among the variables. The long-run elasticities indicate that tourism investment has a significant positive and negative impact on tourism development and CO₂ emissions, respectively. Finally, the short-run heterogeneous panel non-causality test results show the evidence of bidirectional causality between tourism investment and tourism revenue. These results therefore suggest that tourism investments not only increase tourism revenue but also reduce CO₂ emissions. Given these findings, we suggest the policy makers of the EU nations to initiate more effective policies to increase the tourism investments. The increasing tourism investments will allow the industry to grow further by ensuring sustainable tourism development across the EU member countries.     

Investigating the tourism and economic growth linkage: a panel causality analysis for the SAARC countries

Tourism receipts and expenditure are considered to be causally related to economic growth. The present study investigates the causal relationship between tourism receipts and tourism expenditure to economic growth for a panel of the South Asian Association for Regional Cooperation (SAARC) countries over a 20-year period (1995–2014). The present study used panel Granger causality tests and panel fully modified ordinary least squares to test the presence and magnitude of the causality. Results indicated a bidirectional causal linkage between growth and tourism expenditure only, while tourism receipts were found to influence growth. Tourism expenditure was found to have a negative effect on growth.     

Dynamic relationship between tourism,economic growth,and environmental quality

Abstract

In the recent era of globalisation, the tourism sector is growing rapidly and stimulates economic growth across the world, however, the inevitable environmental consequences of tourism cannot be ignored. For sustainable tourism, it is necessary to understand the interrelationship between economic growth, tourism, and environmental quality. Hence, the objective of the current research is to investigate the dynamic relationship between tourism, economic growth, and CO₂ emissions from 1995 to 2014 in the context of BRICS economies. A group of econometric tests robust to heterogeneity and cross-sectional dependence is applied to achieve accurate and unbiased results. Empirical findings propose that tourism sector significantly encourages economic growth; however, tourism degrades the quality of the environment. Also, globalisation has a long-term relationship with economic growth but an insignificant relationship with CO₂ emissions. The long-term elasticities further recommend that investment stimulate economic growth and mitigate CO₂ emissions. Moreover, environmental Kuznets curve (EKC) holds in BRICS countries in its significance to tourism and globalisation. Finally, a heterogeneous panel non-causality test detects bi-directional causality between tourism receipts and CO₂ emissions. Moreover, tourism and investment in tourism Granger cause each other. Empirical findings direct towards important policy implications.     

Impact of tourism on CO2 emission: evidence from Pakistan

This study investigates the carbon dioxide (CO₂) emission–tourist arrival–growth in Pakistan by taking time series data from the period of 1972 to 2013. The study applied three approaches of co-integration (autoregressive distributed lag bounds test, Johansen and Juselius and Gregory and Hansen structural break test) to confirm the valid long-run positive interaction between CO₂ emission and tourist arrivals. The robustness of cointegrating vectors is further checked using fully modified ordinary least square and dynamic ordinary least square tests and results validate the long-run coefficients. The results of variance decomposition method exhibit the uni-directional causality between CO₂ emission and tourist arrivals running from tourist arrival to CO₂ emission. It was therefore noted that policies which moderate the influence of tourism development to emission are necessary for reducing the harmful effect of tourist activities and also to increase the impact of tourism upon the economic growth. The study may guide policy-makers in formulating categorical energy and tourism development policies for sustainable growth for long periods.     

Tourism and economic growth nexus revisited: A panel causality analysis for the case of the Mediterranean Region

Tourism is perceived as an important source of foreign exchange that is used for financing economic growth. This study offers a modern approach to tourism-led growth and investigates the causal relationship between tourism and economic growth in the European, Asian and African countries that border the Mediterranean Sea. The study uses panel data for the period 1998–2011, and adopts a panel Granger causality analysis developed by Dumitrescu and Hurlin (2012) to assess the contribution tourism makes to economic growth in each country. The results indicate that the direction of causality between tourism and economic growth depends on the country group and tourism indicator. Furthermore, the European countries are better able to generate growth from tourism in the Mediterranean region.     

Nexus of tourism,terrorism, and economic growth in Thailand: new evidence from asymmetric ARDL cointegration approach

ABSTRACT

This study investigates the asymmetric (nonlinear) relationship between tourism, terrorism, and economic growth of Thailand. The study employed an annual data set that ranges from 1990 to 2017 by using a novel co-integrating technique known as asymmetric ARDL cointegration approach advanced by Shin, Yu, and Greenwood-Nimmo. The outcome of the present study revealed significant differences in the reaction of the economic growth because of negative and positive changes in tourism and terrorism. The obtained asymmetric results can be helpful for more proficient policymaking and forecasting regarding the economy of Thailand. Ignoring intrinsic asymmetries may misrepresent implication.     

Decomposition of tourism greenhouse gas emissions: Revealing the dynamics between tourism economic growth,technological efficiency,and carbon emissions

This study proposes an analytical framework for decomposing the national tourism carbon footprint and carbon efficiency to identify the dynamics between economic growth, technological efficiency, and environmental externality. Using the environmentally extended input–output model and decomposition methods, tourism carbon changes are decomposed into the economic factors of total consumption and purchasing patterns, and the production factors of industry input structure and technological improvement. This macro-level approach provides a basis for 1) assessing whether total tourism emissions increase in direct proportion to tourism consumption over time, 2) tracing the underlying determinants and their effects on tourism emissions expansion and eco-efficiency performance, and 3) comparing the carbon performance of the tourism industry against the national average. Based on the example of Taiwan, the results demonstrate that we are a long way from the goal of using the technological efficiencies of production to offset tourism-based carbon emissions.     

Tourism specialization,economic growth,human development and transition economies: The case of Poland

This study examines the relationship between tourism specialization economic growth, and human development in a transition economy. It proffers a conceptual link between tourism specialization and human development through a division of labor framework. Dynamic comparative advantage, Sen's capability approach, and the translog production function characterize the conceptual relationship. The Limited Information Maximum Likelihood (LIML) estimates this relationship's nature in the case of Poland. Tourism specialization has a short-term effect on economic growth and a negative and indirect link to human development. Economic growth seems the channel that supports human development expansion, indicating short- and long-term significant, positive effects. Human capital reveals a U- shape pattern in its relationship with economic growth and human development. The study's implications are two testable propositions and two policy options suggesting tourism specialization's potential impact on private and public incomes, which are relevant developmental channels in transition economies.     

Quantifying Spanish tourism's carbon footprint: the contributions of residents and visitors: a longitudinal study

This paper develops and explains an input–output model to quantify the carbon footprint linked to residents' and visitors' tourist consumption in the Spanish economy between 1995 and 2007, thus offering a rare longitudinal review of a national carbon footprint. Two measures are calculated: a domestic one similar to the producer responsibility criterion and a total measure that includes imported intermediate and final goods, similar to the consumer responsibility measure. The important role of tourism in Spain explains why its domestic carbon footprint represented 10.6% of total CO₂ emissions in 2007. Visiting tourists represented 47% of this figure, households 36%, business tourism represented 14% and public administration expenditures 3%. By industry, transport (26%) was positioned as the highest emitter in 2007, with hotels and restaurants the second (21%) (benefitting indirectly from energy and environmental efficiency improvements over the period). The Spanish reliance on imported oil products and the growing importance of foreign-based air services has caused the total carbon footprint of tourism to increase by more than 100%. Therefore, climate change mitigation plans must include imports, and action must take place through the whole global production chain and in the transport sector, particularly air transport. Future mitigation policies are discussed.