The dynamic relationship between CO₂emission, international tourism and energy consumption in Pakistan: a cointegration approach

Abstract

Purpose The present study aims to investigate the dynamic relationship between international tourist receipts, economic growth, energy use and carbon dioxide (CO2) emissions in Pakistan over the period 1980-2016. Many researchers have investigated the link between tourism and CO2 emissions, but there is no clear picture as the results are contradictory. This study is an attempt to compliment the literature related to tourism and environmental quality. Design/methodology/approach The study adopted the autoregressive distributed lagged (ARDL) model to investigate the short- and long-run estimates simultaneously. The study further applied Granger causality to find out the direction of causalities. To arrive at long-run robust estimates, the study used dynamic ordinary least squares (DOLS) model. Findings The results found that tourist receipts have no significant impact on environmental quality, while growth and energy consumption are the main determinants of CO2 emissions in Pakistan. The Granger causality test confirmed unidirectional causalities from GDP and energy consumption toward CO2 emissions, while tourist receipts do not affect environmental quality. DOLS technique confirmed the long-run estimates of ARDL model. Research limitations/implications The result of the study complements the literature by adding new evidence regarding the nexus of tourism and environment. Findings of the study are important for policymakers and regulatory bodies to place their focus on the development of tourism sector (services sector) rather than energy-intensive manufacturing activities to sustain the growth of the country in higher quartiles, as tourism receipts have no significant negative externalities toward environment, while energy use is one of the key determinants of environmental degradation. Originality/value This study used time series data over the period 1980-2016 for Pakistan to inspect the dynamic relationship between tourist receipts, economic growth, energy consumption and CO2 emissions.

Investigating the nexus between CO 2 emissions, economic growth, energy consumption and pilgrimage tourism in Saudi Arabia

“…According to Danish et al (2019), energy consumption is responsible for the increase in CO 2 emissions in all income groups. Liu et al (2019) studied for Pakistan covered the data peroid from 1980 to 2016. Their results suggested that there is no significant relationship between tourism and pollution.…”

Are Tourism and Energy Consumption Linked? Evidence from Australia

“…The existing literature on energy economics generally focuses on the link between economic growth, energy, tourism, and carbon emissions [36][37][38][39][40][41][42][43][44][45][46]. The nexus between tourism and energy has been a neglected topic, with a relatively smaller strand of literature studying the relationship between energy consumption and the tourism sector ignoring CO 2 [47][48][49].…”

Revisiting the Dynamics of Tourism, Economic Growth, and Environmental Pollutants in the Emerging Economies—Sustainable Tourism Policy Implications

“…Sharif, Afshan [11] found a unidirectional causality between tourist arrivals and CO 2 emissions, running from tourist arrivals to CO 2 emissions in Pakistan. Liu, Kumail [20] used time-series data (1980-2016) of Pakistan and found no relationship between tourism development and environmental quality. Besides, these studies did not provide specific policy implications on how to make tourism sustainable or how to implant the concept of sustainable development in the developing countries.…”