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Tourism and CO2 emissions nexus in Southeast Asia: new evidence from panel estimation

The past decade has seen the rapid development of the tourist industry in Southeast Asia. There is increasing concern that tourism is highly affecting CO 2 emissions, but the nature of the relationship is still unclear. The main target of this paper is to investigate the existence of a linear and/or...

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Bibliographic Details
Published in:Environment, development and sustainability development and sustainability, 2017-08, Vol.19 (4), p.1407-1423
Main Authors: Sherafatian-Jahromi, Reza, Othman, Mohd Shahwahid, Law, Siong Hook, Ismail, Normaz Wana
Format: Article
Language:English
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Summary:The past decade has seen the rapid development of the tourist industry in Southeast Asia. There is increasing concern that tourism is highly affecting CO 2 emissions, but the nature of the relationship is still unclear. The main target of this paper is to investigate the existence of a linear and/or nonlinear relationship between tourism and CO 2 emissions in the five most important countries located in Southeast Asia, using the panel cointegration and pooled mean group techniques. The results indicate that tourism and CO 2 emissions are cointegrated, implying that tourism affects CO 2 emissions in the long run. Our findings support the nonlinear relationship between tourism and emissions as well as economic activities and CO 2 emissions. Accordingly, an inverted U-shaped relationship exists between tourism and emissions confirming the existence of an Environmental Kuznets Curve in the Southeast Asian tourism industry. Furthermore, the empirical results show that economic activities and energy consumption greatly increase emissions.
ISSN:1387-585X
1573-2975
DOI:10.1007/s10668-016-9811-x