Advertisement

Tourism, Carbon Dioxide Emissions and Economic Growth: Evidence from Panel Data

  • Norsiah KadirEmail author
  • Sabri Nayan
  • Ahmad Nizan Mat Noor
  • Dhiya Aishah Zakaria
Conference paper

Abstract

In many countries, the tourism industry contributes significantly to economic growth and development. Growth in the tourism industry, however, might lead to environmental problems. Carbon dioxide (CO2) emissions are believed to be one such problem. Given such a scenario, it is reasonable to see that in recent years, the issues of tourism, CO2 emissions and economic growth have become the concern of many parties – policymakers and researchers in particular. In the literature nonetheless, there are two opposing views pertaining to the relationship between tourism and CO2 emissions and tourism and economic growth. In the growth model, tourism and CO2 emissions are believed to have a significant positive effect on economic growth. On the contrary, the CO2 emissions model asserts that economic growth and tourism industry contribute significantly to CO2 emissions. Utilizing the panel data econometric technique to analyse the data of 30 selected countries across 19 years (1996–2014), this chapter shows evidence of the relationship among tourism, CO2 emissions and economic growth. In the growth model, the level of CO2 emissions significantly affects the economic growth, while for the CO2 emissions model, total tourist arrivals and the level of energy consumption are statistically significant in affecting the level of CO2 emissions.

Keywords

Tourism CO2 emissions Economic growth Panel data 

References

  1. Alkhathlan, K., Alam, M. Q., & Javid, M. (2012). Carbon dioxide emissions, energy consumption and economic growth in Saudi Arabia: A multivariate co-integration analysis. British Journal of Economics, Management & Trade, 2(4), 327–339.CrossRefGoogle Scholar
  2. Arouri, M. H., Youssef, A., M’Henni, H., & Rault, C. (2012). Energy consumption, economic growth and CO2 emissions in Middle East and North African countries. Journal of Energy Policy, 45, 342–349.CrossRefGoogle Scholar
  3. Arslanturk, Y., Balcilar, M., & Ozdemir, Z. A. (2011). Time-varying linkages between tourism receipts and economic growth in a small open economy. Economic Modelling, 28, 664–671.CrossRefGoogle Scholar
  4. Balaguer, J., & Cantavella-Jordà, M. (2002). Tourism as a long-run economic growth factor: The Spanish case. Applied Economics, 34, 877–884.CrossRefGoogle Scholar
  5. Chebbi, H. E., & Boujelbene, Y. (2008). CO2 emissions, energy consumption and economic growth in Tunisia. 12th Congress of the European Association of Agricultural Economists.Google Scholar
  6. Chou, M. C. (2013). Does tourism development promote economic growth in transition countries? A Panel Data Analysis, 33, 225–232.  https://doi.org/10.1016/j.ecomod.2013.04.024.CrossRefGoogle Scholar
  7. Deike, P. U. C. (2003). Tourism in Africa’s economic development: Policy implications. Management Decisions, 41(3), 287–295.CrossRefGoogle Scholar
  8. Dritsaki, C., & Dritsaki, M. (2014). CO2 emissions, energy consumption, financial development and economic growth: A multivariate cointegration and causality analysis for Greece. World Applied Sciences Journal, 32(2), 309–321.Google Scholar
  9. Dubois, G., & Ceron, J. (2006). Tourism/leisure greenhouse gas emissions forecasts for 2050: Factors for change in France. Journal of Sustainable Tourism, 14(2), 172–191.CrossRefGoogle Scholar
  10. Durbarry, R., & Seetanah, B. (2015). The impact of long haul destinations on carbon emissions: The case of Mauritius. Journal of Hospitality Marketing and Management, 24(4), 401–410.CrossRefGoogle Scholar
  11. Gössling, S. (2002). Global environmental consequences of tourism. Global Environmental Change, 12, 283–302.CrossRefGoogle Scholar
  12. Gunduz, L., & Hatemi-J, A. (2005). Is the tourism-led growth hypothesis valid for Turkey? Applied Economics Letters, 12, 499–504.CrossRefGoogle Scholar
  13. Hart, P., Becken, S., & Turney, I. (2005). Offsetting carbon dioxide emissions from tourism. Foundation for Research, Science and Technology, 97–104.Google Scholar
  14. Holzner, M. (2011). Tourism and economic development: The beach disease? Tourism Management, 32, 923–933.CrossRefGoogle Scholar
  15. Hossain, S. (2012). An econometric analysis for CO2 emissions, energy consumption, economic growth, foreign trade and urbanization of Japan. Low Carbon Economy, 3, 92–105.CrossRefGoogle Scholar
  16. Kadir, N., & Karim, M. Z. A. (2012). Tourism and economic growth in Malaysia: Evidence from tourist arrivals from ASEAN-5 countries. Ekonomska Istrazivanja – Economic Research, 25, 1089–1100.CrossRefGoogle Scholar
  17. Kuznets, S. (1955). Economic growth and income inequality. American Economic Review, 45(1), 1–28.Google Scholar
  18. Lee, J. W., & Brahmasrene, T. (2013). Investigating the influence of tourism on economic growth and carbon emissions: Evidence from panel analysis of the European Union. Tourism Management, 38, 69–75.CrossRefGoogle Scholar
  19. Onuonga, S. M. (2012). The relationship between commercial energy consumption and gross domestic income in Kenya. The Journal of Developing Areas, 46(1), 305–314.CrossRefGoogle Scholar
  20. Peters, P., & Dubois, G. (2010). Tourism travel under climate change mitigation constraints. Journal of Transport Geography, 18, 447–457.CrossRefGoogle Scholar
  21. Sharpley, R., & Telfer, D. J. (2002). Tourism and development: Concepts and issues. Clevedon: Channel View Publications.Google Scholar
  22. Soytas, U., & Sari, R. (2007). Energy consumption, economic growth, and carbon emissions: Challenges faced by an EU candidate member. Ecological Economics, 68(6), 1667–1675.  https://doi.org/10.1016/J.ecolecon.2007.06.014.CrossRefGoogle Scholar
  23. World Bank. (2015). World Bank’s world development indicators. Dataset retrieved from world development indicators website: http://data.worldbank.org/data-catalog/world-development-indicators.
  24. World Tourism Organization. (2015). UNWTO annual report 2015. Retrieved from World Tourism Organization website: www.unwto.org.
  25. Zhang, X. H. (2012). Research on the relationship of energy efficiency, carbon emissions and economic growth in China and Thailand (pp. 24–26). Bangkok: Strategic Research Seminar.Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Norsiah Kadir
    • 1
    Email author
  • Sabri Nayan
    • 2
  • Ahmad Nizan Mat Noor
    • 1
  • Dhiya Aishah Zakaria
    • 1
  1. 1.Faculty of Business ManagementUniversiti Teknologi MARA Cawangan PerlisArauMalaysia
  2. 2.School of Economics, Finance and Banking, College of BusinessUniversiti Utara MalaysiaSintokMalaysia

Personalised recommendations