Tourist arrivals, energy consumption and pollutant emissions in a developing economy–Implications for sustainable tourism

Muhammad Indra al Irsyad (), Rabindra Nepal and Sanjay Kumar Nepal

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: Sustainable tourism management policies should aim at maximising economic benefits from tourist arrivals while minimizing associated adverse impacts on the environment. This study assesses the short-run and long-run relationships between tourist arrivals, per capita economic output, emissions, energy consumption and capital formation, citing Nepal as a specific case study. We developed four hypotheses and tested them using time-series econometrics based on the autoregressive distributed lag model and Granger causality tests. The results provide strong evidence of an economy driven tourism sector where expansion in economic output leads to expansion in tourist arrivals. More tourist arrivals, in turn, generate positive impacts on gross capital formation. Energy consumption negatively affects tourist arrivals, calling for increased attention towards improving energy efficiency and energy diversity. We conclude that national policies to increase tourist arrivals should be integrated with national energy and environmental policies in order to facilitate the transition towards a sustainable tourism sector.

Keywords: sustainable tourism; Autoregressive distributed lag (ARDL); Granger causality; energy consumption; climate change (search for similar items in EconPapers)
JEL-codes: C32 Z32 Z38 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2019-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-tur
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Citations: View citations in EconPapers (47)

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Related works:
Working Paper: Tourist arrivals, energy consumption and pollutant emissions in a developing economy–implications for sustainable tourism (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2019-03

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