Testing the Dynamic Relationship Among CO2 Emissions, Economic Growth, Energy Consumption and Tourism Development. Evide
Carbon dioxide (CO2) emission is directly linked with energy usage and plays an essential role in the debate on sustainable tourism development and environmental protection. Some authors argue that tourism faces the problem of being “addicted” to growth,
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Testing the Dynamic Relationship Among CO2 Emissions, Economic Growth, Energy Consumption and Tourism Development. Evidence for Uruguay Juan Gabriel Brida, Bibiana Lanzilotta, and Fiorella Pizzolon Abstract Carbon dioxide (CO2 ) emission is directly linked with energy usage and plays an essential role in the debate on sustainable tourism development and environmental protection. Some authors argue that tourism faces the problem of being “addicted” to growth, which is incompatible with sustainable goals. The literature shows that the environmental Kuznets curve (EKC) hypothesis induced by tourism is verified, with some differences between developed and developing economies. Previous country-studies usually apply linear cointegration techniques and Granger causality tests in order to test the EKC hypothesis. This study explores the linkages between CO2 emissions, economic growth, energy consumption and tourism development for Uruguay without imposing—a priori—any parametric model, in order to investigate the presence of nonlinearity in the relation, as postulated by the EKC hypothesis. This paper examines the dynamic long-run relationship among these variables, using data from 1960 to 2014. We test the existence of nonlinear cointegration relationship and the causality applying nonparametric tests. We find that this methodology provides a more suitable way to represent linkages between the variables under study for Uruguay. Nevertheless, the evidence regarding the causality between tourism growth and CO2 emissions is weak. Finally, we discuss policy implications, limitations, and future research. Keywords Tourism-induced EKC hypothesis · Nonlinear cointegration · Nonparametric causality tests · Uruguay JEL Codes C30 · E43 · L83
J. G. Brida (B) · B. Lanzilotta · F. Pizzolon Facultad de Ciencias Económicas y de Administración, Research Group in Economic Dynamics (GIDE), Universidad de la República, Montevideo, Uruguay e-mail: [email protected] B. Lanzilotta e-mail: [email protected] F. Pizzolon e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Balsalobre-Lorente et al. (eds.), Strategies in Sustainable Tourism, Economic Growth and Clean Energy, https://doi.org/10.1007/978-3-030-59675-0_7
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7.1 Introduction Many studies explore the relationship between energy consumption, environmental pollution—usually proxied by carbon dioxide (CO2 ) emissions, and economic growth. However, less attention has been paid to this relationship concerning the tourism sector, a particular sector of the economy that deserves attention. Tourism is a large and dynamic economic sector. Its total contribution accounts for 10.4% of global gross domestic product (GDP), 9.9% of total employment, and 4.5% of total investment, in 2017. In recent years, it has registered a steady growth rate of 4% annually (World Travel and Tourism Council 2018). Several studies have confirmed tourism development as an engine of economic growth in some count
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