Tourism development influence on environmental quality: how renewable energy use and income matter?

ABSTRACT

Tourism is a significant economic growth and development source, but it relies heavily on the energy sector and contributes to carbon dioxide (CO2) emissions. This study examines how tourism growth, renewable energy, and real GDP affect CO2 emissions in the BRICS countries. The researchers used panel unit root, Pedroni, and Kao methods to test for a long-run equilibrium relationship among the variables. The results reveal that tourism growth harms CO2 emissions in the long run, with a 1% increase in tourism growth leading to a 0.05% decrease in CO2 emissions. Renewable energy usage also harms CO2 emissions, with a 1% increase in renewable energy leading to a 0.15% decrease in CO2 emissions in the long run. CO2 emissions and real GDP show a U-shaped relationship in the long run, supporting the environmental Kuznets curve hypothesis. This hypothesis suggests that CO2 emissions increase with economic growth at low-income levels but decrease with economic growth at high-income levels. Therefore, the study implies that tourism growth can significantly lower CO2 emissions by promoting renewable energy usage and economic development.