MODELLING CAUSAL RELATIONSHIPS AMONG TOURISM, ENERGY, CO2 EMISSIONS AND ECONOMIC GROWTH
MODELLING CAUSAL RELATIONSHIPS AMONG TOURISM, ENERGY, CO2 EMISSIONS AND ECONOMIC GROWTH

Summary/Abstract: This study investigates causal relationships among tourism, energy consumption, economic growth, and CO2 emissions for the 10 highest ranked countries in terms of tourist arrivals in the world for the period 1995-2014 using the panel VAR model. Our findings suggest a bidirectional causal link between tourism and pollutant emission as well as between energy and pollutant emission while the results show a unidirectional causality flowing from economic growth to carbon dioxide emission. The impulse response analysis also shows that the responses of carbon dioxide emissions to shocks in economic growth and energy consumption appear positive within ten years period while the response to shocks in tourism appear negative within the first four years but revert to the equilibirium in the fifth year providing some important insights for policy makers supporting sustainable tourism.

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