The Empirical Evidence on Tourism-Urbanization-CO2 Emissions Nexus

Year 2019, Volume: 7 Issue: 1, 85 - 105, 31.05.2019

Elma Satrovic , Adnan Muslija

https://doi.org/10.30519/ahtr.484287

Cited By: 29

Abstract

This study explores the tourism-urbanization-CO2
emissions nexus in the top 10 touristic destination over the period 1995-2016.
Panel VAR methodology is employed. The findings of bivariate VAR models suggest
the urbanization (UP) to have a significant positive response to the tourism
receipts per capita (TR) as well as the negative response of the UP to the
emissions of CO2. The outcome of trivariate model suggests a significant
positive response of UP to its lagged value. However, tourism receipts per
capita are found to respond negatively to the urbanization. The significant
negative coefficient of -0.032 with UP suggests a negative response of
urbanization to CO2 emissions. IRFs (Impulse Response Functions) suggest a
negative response of CO2 to TR in the short-run. The impact is not found to be
significant in the long-run. Besides that, the results suggest a positive
decreasing response of urbanization to emissions of CO2. The results of this
paper advocate the great environmental-awareness of citizens in the top 10
tourist destination suggesting that sustainable tourism has no alternative and
key decision makers should develop strategies and do necessary steps in order
to promote the development of sustainable tourism since the
environment-friendly tourism is suggested to be the only acceptable one.

Keywords

CO2 emissions, panel VAR, tourism-urbanization-CO2 emissions nexus

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