The effect of tourism investment on tourism development and CO2 emissions: Empirical evidence from the EU nations

Sudharshan Reddy, Md. Samsul Alam, Chi Keung Lau

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The objective of this study is to investigate the effect of tourism investment on tourism development and CO 2 emissions in a panel of 28 EU countries using annual data from 1990 to 2013. The empirical results from a panel cointegration test confirm the presence of long-run equilibrium relationship among the variables. The long-run elasticities indicate that tourism investment has a significant positive and negative impact on tourism development and CO 2 emissions, respectively. Finally, the short-run heterogeneous panel non-causality test results show the evidence of bidirectional causality between tourism investment and tourism revenue. These results therefore suggest that tourism investments not only increase tourism revenue but also reduce CO 2 emissions. Given these findings, we suggest the policy makers of the EU nations to initiate more effective policies to increase the tourism investments. The increasing tourism investments will allow the industry to grow further by ensuring sustainable tourism development across the EU member countries.

LanguageEnglish
Pages1587-1607
Number of pages21
JournalJournal of Sustainable Tourism
Volume26
Issue number9
Early online date15 Oct 2018
DOIs
Publication statusPublished - 2018

Fingerprint

tourism development
tourism
EU
Tourism
evidence
revenue
effect
CO2 emissions
Empirical evidence
Tourism development
ecotourism
elasticity
causality
industry

Cite this

@article{a4d18923ba4f4c04aa66f0823f3ee07e,
title = "The effect of tourism investment on tourism development and CO2 emissions: Empirical evidence from the EU nations",
abstract = "The objective of this study is to investigate the effect of tourism investment on tourism development and CO 2 emissions in a panel of 28 EU countries using annual data from 1990 to 2013. The empirical results from a panel cointegration test confirm the presence of long-run equilibrium relationship among the variables. The long-run elasticities indicate that tourism investment has a significant positive and negative impact on tourism development and CO 2 emissions, respectively. Finally, the short-run heterogeneous panel non-causality test results show the evidence of bidirectional causality between tourism investment and tourism revenue. These results therefore suggest that tourism investments not only increase tourism revenue but also reduce CO 2 emissions. Given these findings, we suggest the policy makers of the EU nations to initiate more effective policies to increase the tourism investments. The increasing tourism investments will allow the industry to grow further by ensuring sustainable tourism development across the EU member countries.",
keywords = "Sustainable tourism investments, Tourism development, CO2 emissions, The European Union",
author = "Sudharshan Reddy and Alam, {Md. Samsul} and Lau, {Chi Keung}",
year = "2018",
doi = "10.1080/09669582.2018.1489398",
language = "English",
volume = "26",
pages = "1587--1607",
journal = "Journal of Sustainable Tourism",
issn = "0966-9582",
publisher = "Routledge",
number = "9",

}

The effect of tourism investment on tourism development and CO2 emissions : Empirical evidence from the EU nations. / Reddy, Sudharshan ; Alam, Md. Samsul; Lau, Chi Keung.

In: Journal of Sustainable Tourism, Vol. 26, No. 9, 2018, p. 1587-1607.

Research output: Contribution to journalArticle

TY - JOUR

T1 - The effect of tourism investment on tourism development and CO2 emissions

T2 - Journal of Sustainable Tourism

AU - Reddy, Sudharshan

AU - Alam, Md. Samsul

AU - Lau, Chi Keung

PY - 2018

Y1 - 2018

N2 - The objective of this study is to investigate the effect of tourism investment on tourism development and CO 2 emissions in a panel of 28 EU countries using annual data from 1990 to 2013. The empirical results from a panel cointegration test confirm the presence of long-run equilibrium relationship among the variables. The long-run elasticities indicate that tourism investment has a significant positive and negative impact on tourism development and CO 2 emissions, respectively. Finally, the short-run heterogeneous panel non-causality test results show the evidence of bidirectional causality between tourism investment and tourism revenue. These results therefore suggest that tourism investments not only increase tourism revenue but also reduce CO 2 emissions. Given these findings, we suggest the policy makers of the EU nations to initiate more effective policies to increase the tourism investments. The increasing tourism investments will allow the industry to grow further by ensuring sustainable tourism development across the EU member countries.

AB - The objective of this study is to investigate the effect of tourism investment on tourism development and CO 2 emissions in a panel of 28 EU countries using annual data from 1990 to 2013. The empirical results from a panel cointegration test confirm the presence of long-run equilibrium relationship among the variables. The long-run elasticities indicate that tourism investment has a significant positive and negative impact on tourism development and CO 2 emissions, respectively. Finally, the short-run heterogeneous panel non-causality test results show the evidence of bidirectional causality between tourism investment and tourism revenue. These results therefore suggest that tourism investments not only increase tourism revenue but also reduce CO 2 emissions. Given these findings, we suggest the policy makers of the EU nations to initiate more effective policies to increase the tourism investments. The increasing tourism investments will allow the industry to grow further by ensuring sustainable tourism development across the EU member countries.

KW - Sustainable tourism investments

KW - Tourism development

KW - CO2 emissions

KW - The European Union

U2 - 10.1080/09669582.2018.1489398

DO - 10.1080/09669582.2018.1489398

M3 - Article

VL - 26

SP - 1587

EP - 1607

JO - Journal of Sustainable Tourism

JF - Journal of Sustainable Tourism

SN - 0966-9582

IS - 9

ER -