The role of renewable energy and trade openness in sustainable tourism development: Evidence from Uzbekistan

Abstract

The purpose of this study is to examine the relationship between renewable energy adoption, trade openness, and environmentally sustainable tourism development in Uzbekistan. This research analyzes the long-run relationship between international tourism spending, renewable electricity generation, trade openness, and gross capital formation using annual time series data from 2000 to 2023. Employing a vector error correction model (VECM), the analysis reveals significant interactions promoting environmental sustainability through tourism. Results demonstrate that renewable electricity generation substantially enhances tourism spending (coefficient: 2.26, p < 0.05), indicating that clean energy adoption strengthens Uzbekistan’s position as an environmentally responsible destination. Trade openness positively impacts sustainable tourism development (coefficient: 0.22, p < 0.05), while gross capital formation shows temporary negative effects (coefficient: –0.33, p < 0.05) in the short run. These findings highlight renewable energy’s critical role in environmental protection and sustainable tourism growth. Policy recommendations emphasize expanding renewable energy infrastructure, aligning capital investments with environmental tourism objectives, and strengthening trade liberalization to support ecological sustainability. The results provide evidence that environmental preservation through renewable energy adoption can simultaneously drive economic growth in the tourism sector, contributing to Uzbekistan’s sustainable development goals.