Chen, Jen-Eem and Ahmad, Mahyudin and Mohd Zulkifli, Shaliza Azreen and Tan, Yan-Ling and Mustofa, Moh. Solehatul (2024): Tourism development, renewable energy, and environmental quality in Asean: New evidence from panel estimators robust to cross-sectional dependence and heterogeneity.
Preview |
PDF
MPRA_paper_122212.pdf Download (487kB) | Preview |
Abstract
Tourism is widely recognized as a key driver of economic growth and development, yet its dependence on the energy sector has raised concerns regarding its environmental impact. Aiming to elucidate the roles of tourism and renewable energy in shaping the environmental outcomes, this study investigates the nexus between tourism development, renewable energy utilization, and environmental quality across 10 ASEAN countries over a 25-year period from 1995 to 2019 by employing panel estimators robust to heterogeneity and cross-sectional dependence such as Panel Corrected Standard Errors (PCSE), Feasible Generalized Least Squares (FGLS), and Augmented Mean Group (AMG) that are rarely utilized in the ASEAN context. Our findings reveal that tourism activity contributes to CO2 and greenhouse gas emissions, with a 1% increase in tourist arrivals associated with a 0.1 to 0.3% rise in emissions. Moreover, we observe a significant mitigating effect of renewable energy on tourism-induced emissions. Our analysis also lends strong support to the Environmental Kuznets Curve (EKC) hypothesis, indicating a threshold level of GDP per capita of USD 13,000, beyond which the adverse environmental impact of GDP turns positive. The common dynamic process in AMG estimator is found to raise emissions, implying the ASEAN strategic policies on sustainable tourism and energy cooperation may not yet come to fruition given the region’s heavy reliance on non-renewable energy sources to sustain tourism and meet population demands. We conclude with policy implications aimed at fostering sustainable tourism and development in the region.
Item Type: | MPRA Paper |
---|---|
Original Title: | Tourism development, renewable energy, and environmental quality in Asean: New evidence from panel estimators robust to cross-sectional dependence and heterogeneity |
English Title: | Tourism development, renewable energy, and environmental quality in Asean: New evidence from panel estimators robust to cross-sectional dependence and heterogeneity |
Language: | English |
Keywords: | CO2 emissions, Environmental Kuznets Curve, Environmental quality, Renewable energy, Tourism development. |
Subjects: | O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth |
Item ID: | 122212 |
Depositing User: | Mahyudin Ahmad |
Date Deposited: | 29 Sep 2024 23:32 |
Last Modified: | 29 Sep 2024 23:32 |
References: | AEIB, 2023. ASEAN Economic Integration Brief - No.13. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://asean.org/wpcontent/uploads/2023/07/AEIB_No.13_July2023_final.pdf Ahmad, F., Draz, M. U., Su, L., Ozturk, I., Rauf, A., 2018. Tourism and environmental pollution: Evidence from the One Belt One Road provinces of Western China. Sustainability, 10, 3520. https://doi:10.3390/su10103520 Azam, M., Alam, M. M., Hafeez, M. H., 2018. Effect of tourism on environmental pollution: Further evidence from Malaysia, Singapore and Thailand. Journal of Cleaner Production, 190, 330-338. https://doi.org/10.1016/j.jclepro.2018.04.168 Badulescu, D., Simut, R., Mester, I., Dzitac, S., Sehleanu, M., Bac, D. P., Badulescu, A., 2021. Do economic growth and environment quality contribute to tourism development in EU countries? A panel data analysis. Technological and Economic Development of Economy, 27(6), 1509–1538. https://doi.org/10.3846/tede.2021.15781 Beck, N., Katz, J. N., 1995. What to do (and not to do) with time-series cross-section data. American Political Science Review, 89, 634–647. Ben Jebli., M., Ben Youssef, S., Apergis, N., 2019. The dynamic linkage between renewable energy, tourism, CO 2 emissions, economic growth, foreign direct investment, and trade. Latin American Economic Review, 28 (2). https://doi.org/10.1186/s40503-019-0063-7 Dickinson, J. E., Lumsdon, L. M., Robbins, D., 2001. Slow travel: issues for tourism and climate change. J Sustain Tour, 19, 281–300. Dubois, G., Ceron, J. P., 2006. Tourism/leisure greenhouse gas emissions forecasts for 2050: Factors for change in France. J Sustain Tour. 14, 172–191. Eberhardt, M., 2012. Estimating panel time-series models with heterogeneous slopes. The Stata Journal, 12(1), 61-71. Gedikli, A., Erdoğan, S., Çevik, E. I., Çevik, E., Castanho, R. A., Couto, G., 2022. Dynamic relationship between international tourism, economic growth and environmental pollution in the OECD countries: Evidence from panel VAR model. Economic Research-Ekonomska Istraživanja, 1-17. https://doi.org/10.1080/1331677X.2022.2041063 Hammoudeh, S., Lahiani, A., Nguyen, D. K., Sousa, R. M., 2014. Asymmetric and nonlinear pass-through of energy prices to CO2 emission allowance prices (NIPE WP 05/2014). Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE). Hoechle, D., 2007. Robust standard errors for panel regressions with cross-sectional dependence. The Stata Journal, 7, Number 3, 281–312. Im, K. S., Pesaran, M. H., Shin, Y., 2003. Testing for unit roots in heterogeneous panels. Journal of econometrics, 115 (1), 53-74. Isik, C., Dogru, T., Turk, E. S., 2017. A nexus of linear and non-linear relationships between tourism demand, renewable energy consumption, and economic growth: Theory and evidence. International Journal of Tourism Research, 20(1), 38–49. https://doi.org/10.1002/jtr.2151 Katircioglu, S. T., 2014. International tourism, energy consumption, and environmental pollution: The case of Turkey. Renewable and Sustainable Energy Reviews, 36, 180-187. http://dx.doi.org/10.1016/j.rser.2014.04.058 Khan, A., Bibi, S., Lorenzo, A., Lyu, J., Babar, Z., 2020. Tourism and development in developing economies: A policy implication perspective. Sustainability, 12(4), 1618. https://doi.org/10.3390/su12041618 Khan, M. T. I., Yaseen, M. R., Ali, Q., 2019. Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis. Energy Economics, 83, 293-310. https://doi.org/10.1016/j.eneco.2019.07.018 Kmenta, J., 1986. Elements of Econometrics. 2nd ed. New York: Macmillan. Lau, H. C., 2022. Decarbonization roadmaps for ASEAN and their implications. Energy Reports, 8, 6000–6022. https://doi.org/https://doi.org/10.1016/j.egyr.2022.04.047 Levin, A., Lin, C.-F., Chu, C.-S. J., 2002. Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics 108, 1-24. Lin, M. T., 2022. Southeast Asia to renew efforts to boost renewable capacity in 2022 after climate pledges: ASEAN researchers. IHS Markit. Liu, D., Ji, J., Wu, M., 2023. Tourism carbon emissions: A systematic review of research based on bibliometric methods. Journal of Quality Assurance in Hospitality & Tourism, 1–21. https://doi.org/10.1080/1528008X.2023.2266861 Maddala, G. S., Wu, S., 1999. A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61, 631–652. https://doi.org/10.1111/1468-0084.0610s1631. Malaysia Biodiversity Information System (MyBIS), 2015. Tourism and biodiversity. Malaysia Biodiversity Centre (MBC). https://www.mybis.gov.my/art/13#:~:text=However%2C tourism is a double,local identity and traditional cultures. OECD., 2021. Tourism. https://www.oecd.org/greengrowth/consumption-innovation/tourism.htm. Pablo-Romero, M. P., Sánchez-Braza, A., García-Soto, M. A., 2023. The impact of tourism on energy consumption: A sectoral analysis for the most visited countries in the world. Economies, 11, 263. https://doi.org/10.3390/economies11100263 Parks, R., 1967. Efficient estimation of a system of regression equations when disturbances are both serially and contemporaneously correlated. Journal of the American Statistical Association, 62, 500–509. Pedroni, P., 1999. Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61, 653-670. Pedroni, P., 2001. Fully modified OLS for heterogeneous cointegrated panels. In Baltagi, B.H., Fomby, T.B. and Carter Hill, R. (Ed.) Nonstationary Panels, Panel Cointegration, and Dynamic Panels (Advances in Econometrics, Vol. 15), Emerald Group Publishing Limited, Leeds, 93-130. Pedroni, P., 2004. Panel cointegration: Asymptotic and finite sample properties of pooled time series tests with an application to the PPP hypothesis. Econometric Theory, 20, 597-625. Pérez-Rodríguez, J. V, Rachinger, H., Santana-Gallego, M., 2021. Does tourism promote economic growth? A fractionally integrated heterogeneous panel data analysis. Tourism Economics, 28(5), 1355–1376. https://doi.org/10.1177/1354816620980665 Pesaran, M. H., 2004. General diagnostic tests for cross section dependence in panels. Cambridge Working Papers in Economics No. 0435, University of Cambridge, Faculty of Economics. Pesaran, M. H., 2007. A simple panel unit root test in the presence of cross-section dependence. Journal Of Applied Econometrics, 22, 265-312. Phillips, P.C., Hansen, B.E., 1990. Statistical inference in instrumental variables regression with I (1) processes. Rev. Econ. Stud, 57 (1), 99-125. Rasool, H., Maqbool, S., Tarique, M., 2021. The relationship between tourism and economic growth among BRICS countries: A panel cointegration analysis. Future Business Journal, 7(1), 1. https://doi.org/10.1186/s43093-020-00048-3 Ren, T. Can, M., Paramati, S. R., Fang, J., Wu, W., 2019. The impact of tourism quality on economic development and environment: Evidence from Mediterranean countries. Sustainability, 11, 2296. https://doi:10.3390/su11082296 Robaina-Alves, M., Moutinho, V., Costa, R., 2016. Change in energy-related CO2 (carbon dioxide) emissions in Portuguese tourism: a decomposition analysis from 2000 to 2008. Journal of Cleaner Production, 111, 520–528. https://doi.org/https://doi.org/10.1016/j.jclepro.2015.03.023 Sghaier, A., Guizani, A., Ben Jabeur, S., Nurunnabi, M., 2019. Tourism development, energy consumption and environmental quality in Tunisia, Egypt and Morocco: A trivariate analysis. GeoJournal, 84, 593-609. https://doi.org/10.1007/s10708-018-9878-z Shakouri, B., Khoshnevis Yazdi, S., Ghorchebigi, E., 2017. Does tourism development promote CO2 emissions? Anatolia, 28(3), 444–452. https://doi: 10.1080/13032917.2017.1335648 . Shimizu, T., Okamoto, H. 2021. Tourism infrastructure and the environment: how does environmental regulation affect welfare, tourism industry, and domestic wage inequality? The Japanese Economic Review, 75, 147–179. https://doi.org/10.1007/s42973-021-00109-4 Shivanna, K. R., 2022. Climate change and its impact on biodiversity and human welfare. Proceedings of the Indian National Science Academy, 88(2), 160–171. https://doi.org/10.1007/s43538-022-00073-6 Szetela, B., Majewska, A., Jamroz, P., Djalilov, B., Salahodjaev, R., 2022. Renewable energy and CO2 emissions in top natural resource rents depending countries: The Role of governance. In Frontiers in Energy Research (Vol. 10). https://www.frontiersin.org/articles/10.3389/fenrg.2022.872941 Tang, C. F., Abosedra, S., 2014. The impacts of tourism, energy consumption and political instability on economic growth in the MENA countries. Energy Policy, 68, 458–464. https://doi.org/https://doi.org/10.1016/j.enpol.2014.01.004 Tang, C. F., Tan, E. C., 2015. Does tourism effectively stimulate Malaysia’s economic growth? Tourism Management, 46, 158–163. https://doi.org/10.1016/j.tourman.2014.06.020 The World Bank, 2024. World Development Indicators (WDI). https://databank.worldbank.org/source/world-development-i Tian, X.-L., Bélaïd, F., Ahmad, N., 2021. Exploring the nexus between tourism development and environmental quality: Role of renewable energy consumption and income. Structural Change and Economic Dynamics, 56, 53-63. https://doi.org/10.1016/j.strueco.2020.10.003 Tsagarakis, K. P., Bounialetou, F., Gillas, K., Profylienou, M., Pollaki, A., Zografakis, N., 2011. Tourists’ attitudes for selecting accommodation with investments in renewable energy and energy saving systems. Renew Sustain Energy Rev., 15, 1335–1342. Tu, J., Zhang, D., 2020. Does tourism promote economic growth in Chinese ethnic minority areas? A nonlinear perspective. Journal of Destination Marketing & Management, 18, 100473. https://doi.org/https://doi.org/10.1016/j.jdmm.2020.100473 UN Press, 2018, October 16. Meetings coverage and press releases: Renewable energy sources cut carbon emissions, efficiently increase electricity output worldwide, delegates say in second committee. United Nations. https://press.un.org/en/2018/gaef3501.doc.htm UNEP, 2024. GOAL 13: Climate action. UN Environment Programme. https://www.unep.org/explore-topics/sustainable-development-goals/why-do-sustainable-development-goals-matter/goal-13 United Nations, 2024. For a livable climate: Net-zero commitments must be backed by credible action. Climate Action. https://www.un.org/en/climatechange/net-zero-coalition UNWTO, 2020. International Tourism Highlights 2020 Edition. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.eunwto.org/doi/pdf/10.18111/9789284422456 UNWTO, 2021. World Tourism Barometer - Statistical annex. World Tourism Barometer - Statistical annex Westerlund, J., 2005. New simple tests for panel cointegration. Econometric Reviews, 24, 297-316. Westerlund, J., 2007. Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics, 69(6), 709-748. World Tourism Organization and International Transport Forum, 2019. Transport-related CO2 emissions of the tourism sector-Modelling results. World Tourism Organization. https://doi.org/doi:10.18111/9789284416660 Xia, W., Doğan, B., Shahzad, U., Adedoyin, F. F., Popoola, A., Bashir, M. A., 2022. An empirical investigation of tourism-led growth hypothesis in the european countries: evidence from augmented mean group estimator. Portuguese Economic Journal, 1-28. Zafar, S. Z., Zhilin. Q., Mabrouk,F., Ramirez-Asis,E., Alzoubi,H.M., Hishan, S. S., Michel, M., 2023. Empirical linkages between ICT, tourism, and trade towards sustainable environment: Evidence from BRICS countries. Economic Research-Ekonomska Istraživanja, 36(2), 2127417. https://doi.org/10.1080/1331677X.2022.2127417 Zhang, L., Gao, J., 2016. Exploring the effects of international tourism on China's economic growth, energy consumption and environmental pollution: Evidence from a regional panel analysis. Renewable and Sustainable Energy Reviews, 53, 225-234. http://dx.doi.org/10.1016/j.rser.2015.08.040 Zhang, S., Liu, X., 2019. The roles of international tourism and renewable energy in environment: New evidence from Asian countries. Renewable Energy, 139, 385-394. https://doi.org/10.1016/j.renene.2019.02.046 |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/122212 |