The nexus of tourism, renewable energy, income, and environmental quality: an empirical analysis of Pakistan

Abstract

In the current study, we investigate the dynamic association of tourism, renewable energy, income, foreign direct investment (FDI), and carbon dioxide (CO 2 e) for Pakistan over 1990-2017. We established four plausible hypotheses and verified by employing the autoregressive distributed lags model and Granger causality based on vector error correction model (VECM). Considering the cointegration relationship between the variables, the outcomes of autoregressive distributed lags suggested that tourism increases economic growth, and economic growth induces tourism in the long-run, thus confirming tourismled development, and growth-led tourism hypothesis; similarly, the tourism generates CO 2 e emissions, which supported the tourism-led emission hypothesis. The role of renewable energy consumption found to be a significant moderator, thus helping to enrich tourism, accelerating economic growth, and combating CO 2 e in the country. VECM causal results indicated the significant bidirectional causal linkages between tourism and economic growth-another causality found between tourism and CO 2 e. There is one-way causality from FDI and renewable energy towards income simultaneously. Overall, the designers of policies will find this study useful for policymaking at government levels for smooth economic growth, investment, and sustainable tourism sector.

Assessing the linkage between energy consumption, financial development, tourism and environment: evidence from method of moments quantile regression

“…This proposition is based on the EKC phenomenon, which states that increased international tourism demand increases energy demand, which leads to a rise in environmental quality (Katircioglu 2014a , b ; Stern 2004 ). Zhang and Liu (2019), cited in Bano et al ( 2021 ), showed that enhancing tourist growth in the long run can aid in the regeneration of environmental infrastructure in ten nations in Northeast and South-East Asia. Tourism is, nevertheless, regarded as a critical part of the environment in this region.…”

Re-investigating the nexuses of renewable energy, natural resources and transport services: a roadmap towards sustainable development

“…There is a positive association between tourism and renewable energy variables, as empirically pronounced by Bano and Alam (2021) also. They posit that the use of renewable energy helps in augmenting tourism, speeding up economic growth, and repelling CO 2 emissions.…”

Renewable Energy, Economic Growth and Economic Development Nexus: A Bibliometric Analysis

“…Belt Road countries were investigated by [110,111], SAARC and ASEAN countries [112], as well as, South Korea [113], Bangladesh [114], Malaysia [115][116][117][118], Indonesia [119][120][121][122][123], Vietnam [124], Taiwan [125], Pakistan [126][127][128][129][130], Kazakhstan [131,132], and Thailand [133]. Not many studies dealing with the African continent [134] investigate the continent, [135] sub-Saharan Africa, [136] Rwanda, [137] Cameron, Nigeria [138], [139] Ethiopia and [140] Tunisia.…”