A nexus of linear and non‐linear relationships between tourism demand, renewable energy consumption, and economic growth: Theory and evidence

Abstract

The purpose of this study is to examine the relationships between tourism development, renewable energy consumption, and economic growth in the United States, France, Spain, China, Italy, Turkey, and Germany using an innovative bootstrap panel Granger causality model. The results show that tourism development and economic growth are interdependent in Germany; whereas tourism development induces economic growth in China and Turkey, the reverse is true in Spain.Causal relationships between renewable energy and economic growth give credence to theories of renewable energy-led growth in Spain and growth-led renewable energy in China, Turkey, and Germany. Whereas the Italian and U.S. models demonstrate a bidirectional relationship, the Spanish, Italian, Turkish, and U.S. data show a causal link stemming from tourism development.Theoretical and policy implications are discussed within the realm of macroeconomics and sustainability.

The Empirical Evidence on Tourism-Urbanization-CO2 Emissions Nexus

“…These results are confirmed by McCroskey (1990) in the case of USA, Shakouri et al (2017) in the case of Asia-Pacific countries, and Isik et al (2018) in the case of Greece. With regards to the Greece, authors suggest that tourism is one of the leading economic sectors but also one of the leaders in term of CO2 emissions.…”

“…In terms of tourism industry, it is important to emphasize its significant positive externalities connected with the improvements in infrastructure, increasing new employment opportunities, increasing foreign direct investments, creating significant amount of revenue and enhancing the economic growth of the touristic destinations (Isik et al, 2018;Satrovic & Muslija, 2017). This sector is also rising exponentially in last decades and becoming the largest industry globally.…”

Is tourism‐led growth hypothesis still valid?

“…On the methodological front also, a number of econometric techniques have been employed to study the causal relation. Although a majority of the studies have established a causal relation amid tourism development and economic progress using Granger noncausality tests, such relationships were also established by employing the Toda–Yamatomo test (see Balaguer & Cantavella‐Jorda, ; Gunduz & Hatemi‐J, ; Isik et al, ; Kyophilavong, Gallup, Charoenrat, & Nozaki, ; Payne & Mervar, ; Risso, Barquet, & Brida, ; Shan & Wilson, ).…”

FACTORS AFFECTING INTEREST RATE AND ITS RELATION WITH BANKS’ PROFITABILITY

“…In October 2014, the Basel Committee on Banking Supervision proposed a modification to its operational risk capital structure that sets out another institutionalized way to deal with supplant the fundamental pointer approach and the institutionalized approach for computing operational risk capital. Operational risk administration is the general procedure of deliberately investigating, surveying, checking, following up and announcing whether the arranging of work undertakings is adequately strong against operational dangers (Isik, et al,2018).…”

“…Economic growth is an expansion in the limit of an economy to deliver products and ventures, contrasted from one timeframe with another (Isik, et al,2018). It can be estimated in ostensible or genuine terms, the last of which is balanced for swelling.…”