• Energy Research

Tourism contributions to economic growth and well-being have been widely acknowledged; however, its impacts on the environment demand an integrated approach to policy improvement across institutions in the emerging economies for the development of sustainable tourism practices. This study investigates the causal relationship between tourism, economic growth (GDP, capital investment), energy consumption, and environmental pollutants in developing economies, explicitly focusing on the case of Pakistan. Various econometric procedures and techniques were applied to test the proposed hypotheses. The findings suggest that economic growth support tourism development. Tourists’ arrivals have a significant positive impact on energy consumption, capital investment, and CO2 emissions; besides, environmental pollutant (CO2) causes negative effects on tourism. The results suggest that a 1 unit increase in tourism increases CO2 emissions metric tons per capita by 0.26 units in the long-run. A 1 unit increase in capital investment increases CO2 emissions metric tons per capita by 0.21 units, and a 1 unit increase in energy consumption increases CO2 emissions metric tons per capita by 0.51 units in the long-run. In the short-run, a 1 unit increase in tourism, capital investment, and energy consumption rises CO2 emissions metric tons per capita by 0.045, 0.04, and 0.08 units, respectively. Sustainable tourism remains a sole option in developing economies to enhance the competitiveness of tourism as a tool for friendly developments. Thus, tourism policies are needed to be integrated with overall economic, environmental, and energy policies to encourage the shift towards sustainable tourism development to minimize environmental pollution.

The tourism and travel industry (TTI) has become a vital developmental tool for boosting economic growth globally; however, this economic thriving is adversely connected to the environment. This study examines the impacts of eight TTI subsectors on economic growth and environmental pollution in the United States of America by contextualizing energy consumption and globalization. We applied the ARDL bounds test and Granger causality approach on time-series data (2005 1st quarter–2019 4th quarter). Granger causality uncovers TLGH, GLTH, and feedback hypotheses between TT subindustries. The subindustries supporting TLGH’s proposal that long-term investment in these sectors could enhance economic growth. In addition, industries supporting GLTH indicate that a strong economy would be beneficial for these industries. Maximum subindustries indicate a significant positive association with energy consumption. The long-run dynamics show that TT subindustries have different influences on greenhouse gases (CO2, CH4, N2O) and air pollutants (CO, NH3, NOx, SO2, VOC, and PM2.5). Long-run dynamics show that food and drinking places emit more GHG than other entertainment and hospitality subsectors. Amusement, gambling, and entertainment contribute more to air pollutants among the entertainment and hospitality subsectors. Road and railway transportation contribute more to GHG emissions than other travel sectors in the long run. Air transportation in the travel subsector is responsible for high air pollutants. The Granger causality results reveal that art, gambling and recreation in entertainment and hospitality industries, and ground transportation contribute the most to environmental pollution. Globalization has varying effects on economic growth, energy consumption, and environmental pollution indicators. We have provided sustainable policy implications for reducing GHG emissions and air pollutants.

Tourism is considered a competent driver of development in emerging economies. This study assesses the role of tourism in shaping the fundamental pillars of development in developing economies by targeting the case of Pakistan. Various econometric techniques and approaches were used to investigate the causal relationships of tourism with economic growth, energy and agriculture development, and poverty. This study highlights the important role of tourism in the development of emerging economies. The findings of our study suggest that a 1% increase in tourism significantly enhances gross domestic product (GPD) by 0.051%, foreign direct investment by 2.647%, energy development by 0.134%, and agriculture development by 0.26%, and reduces poverty by 0.51% in the long run. Hence, policy-makers should be informed that through public interventions, tourism can advance development by the design and implementation of integrated policies in developing economies. In addition, policy consistency and coherence are essential for competitiveness, sustainability, and maximizing benefits from tourism.