The dynamic linkage between renewable energy, tourism, CO2 emissions, economic growth, foreign direct investment, and trade

By Mehdi Ben Jebli, Slim Ben Youssef, N. Apergis. Latin American Economic Review, 2019

299 citations recorded by the source corpus.

Because of the lack of econometric studies in relevance to the link between tourism and renewable energy, the goal of this study is to remedy this lack and to explore the causal relationships between renewable energy consumption, the number of tourist arrivals, the trade openness ratio, economic growth, foreign direct investment (FDI), and carbon dioxide (CO2) emissions for a panel of 22 Central and South American countries, spanning the period 1995–2010. The empirical findings document that the variables under investigation are cointegrated. Short-run Granger causality tests illustrate unidirectional causalities running from: (i) renewable energy to CO2 emissions and trade; (ii) tourism to trade and FDI; and (iii) economic growth to renewable energy and tourism. In the long run, there is evidence of bidirectional causality between renewable energy, tourism, FDI, trade, and emissions. Thus, renewable energy and tourism are in a strong long-run causal relationship. Moreover, long-run estimates for the whole panel and for the three income panel groups considered (Lower Middle, Upper Middle, High) highlight that tourism, renewable energy, and FDI contribute to the reduction of emissions, while trade and economic growth lead to higher carbon emissions. Therefore, attracting foreign direct investment, encouraging the use of renewable energy, and tourism development, particularly green tourism, are good policies for this region to combat climate change.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/12d2a9a9d760029f1d529664029a16a98932ee6e

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Citations in the corpus

Revisiting the role of renewable and non-renewable energy consumption on Turkey’s ecological footprint: Evidence from Quantile ARDL approach (2020, background): “[48] have observed that trade and income increase pollution in 22 Central and South American countries in the long run, whereas renewable energy, the number of tourists and foreign direct investments contribute to environmental quality.”
Tourism, economic growth, energy consumption, and CO2 emissions in China (2020, methodology): “Then through the Granger causality tests in the case of 22 Central and South American countries from 1995 to 2010, Jebli et al. (2019) argued that there are long-run bidirectional causalities between renewable energy, tourism, and emissions while short-run unidirectional causalities are running…”
Does renewable energy consumption reduce ecological footprint? Evidence from eight developing countries of Asia (2020, background): “renewable energy solutions are superior to fossil fuels because they exert less pressure on the environment (Sarkodie and Strezov, 2019; Jebli et al., 2019) without distorting the growth”
How does tourism development affect environmental pollution? (2021, background): “Jebli et al. (2019) have argued that tourism development will promote the consumption of renewable energy for three reasons.”