Dynamic linkages between tourism, economic growth, trade, energy demand and carbon emission: evidence from EU

Abstract

At the heart of the post-COP26 era and the European Green deal lies the underlying goals in Europe targeting climate neutrality and zero pollution through tourism developments and promotion of economic well-being of regions. This study empirically investigates the dynamic linkages among tourism developments and emission while controlling for the influence of economic growth, trade, energy demand under the framework of Panel Autoregressive Distributed Lag (PARDL) using the top 12 tourist countries in the EU from 1995 to 2018. The findings are as follows: First, the study found that trade openness negatively influences emissions. Second, economic growth, tourism, and energy use positively and significantly influence emissions. Third, energy demand positively and significantly influences economic growth and tourism development in the short and long run. The study recommends additional tourism and energy development policies along with structures that rapidly drive economic activities to turn carbon-intensive economies into green economies.