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Environmental Science and Pollution Research

, Volume 26, Issue 18, pp 18834–18845 | Cite as

Does tourism investment improve the energy efficiency in transportation and residential sectors? Evidence from the OECD economies

  • Haiping Li
  • Giray GozgorEmail author
  • Chi Keung Marco Lau
  • Sudharshan Reddy Paramati
Research Article
  • 98 Downloads

Abstract

This paper investigates the impact of tourism investments on energy efficiency across the transportation and residential sectors of 32 Organization for Economic Co-operation and Development economies. Using annual data from 1995 to 2012, we employ various panel econometric techniques to achieve the study objectives. Given the nature of variables, the paper applies panel autoregressive distributed lag models to estimate the long-run elasticities of energy intensity. The long-run estimates confirm that tourism investments play an essential role in improving energy efficiency across the transportation and residential sectors. Furthermore, the results show that both the foreign direct investment inflows and trade openness also play a considerable role in reducing energy uses across these sectors. Finally, the findings suggest that the tourism investments Granger cause energy efficiency of transportation and residential sectors in the short-run. Given these findings, the paper adds considerable value to the empirical literature and also provides various policy- and practical implications.

Keywords

Tourism investments Energy efficiency Transportation Residential Organization for Economic Co-operation and Development economies Panel autoregressive distributed lag estimations 

Notes

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.School of Economic and Management, Beijing Institute of Petrochemical TechnologyBeijingChina
  2. 2.Faculty of Political SciencesIstanbul Medeniyet UniversityIstanbulTurkey
  3. 3.Department of Accountancy, Finance, and EconomicsUniversity of HuddersfieldHuddersfieldUK
  4. 4.School of BusinessUniversity of DundeeDundeeUK

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