Economic Development, Renewable Energy Use, and International Tourism: Strategic Approaches to Carbon Emission Reduction in SICA Countries

Cengiz Gazeloğlu and Eren Erkılıç ()
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Cengiz Gazeloğlu: Department of Statistics, Engineering and Natural Sciences, Süleyman Demirel University, Isparta 32000, Türkiye
Eren Erkılıç: Department of Tourism Management, Ardeşen Tourism Faculty, Recep Tayyip Erdoğan University, Rize 53400, Türkiye

Sustainability, 2025, vol. 17, issue 5, 1-22

Abstract: This study analyzes the dynamic relationships among economic growth, international tourism, renewable energy use, and carbon emissions in the member countries of the Central American Inter-American Integration System (SICA). Conducted using a panel dataset, it was found that economic growth and international tourism increased carbon emissions. On the other hand, it was found that renewable energy usage significantly reduced emissions. The study evaluates the environmental impacts of economic growth in the context of the environmental Kuznets curve and carbon intensity theory. The study also suggests that low-carbon and renewable energy-based tourism practices strengthen both environmental sustainability and long-term economic resilience within the scope of the Energy Transition Theory. In the study, a panel dataset consisting of 140 observations from SICA countries from 2001 to 2020 was used, and the feasible generalized least squares (FGLS) model was applied. As a result, the long-term relationships between the variables were verified with the help of panel cointegration tests. The findings reveal that holistic and long-term policy strategies based on the interaction of economic growth, renewable energy use, and the tourism sector should be developed in order to achieve sustainable development goals in SICA countries.

Keywords: carbon emissions; renewable energy; economic growth; international tourism; panel data; SICA; regression models (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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