Are Tourism and Energy Consumption Linked? Evidence from Australia

Avishek Khanal, Mohammad Mafizur Rahman, Rasheda Khanam and Eswaran Velayutham
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Avishek Khanal: School of Business, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Mohammad Mafizur Rahman: School of Business, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Eswaran Velayutham: School of Business, University of Southern Queensland, Toowoomba, QLD 4350, Australia

Sustainability, 2021, vol. 13, issue 19, 1-20

Abstract: Tourism contributes to the growth of an economy via earning foreign currencies and employment opportunities. However, tourism also contributes to greater energy consumption because of various tourist activities such as hotel accommodations and transportation. This study investigates the long-term cointegrating relationship between international tourist arrivals and primary energy consumption in Australia. In addition, the roles of gross domestic product, gross fixed capital formation, financial development, and total population on energy consumption are also examined. The study covered the last four decades (1976–2018) using data from the Australian Bureau of Statistics, BP Statistical Review, and the World Development Indicators. Augmented Dickey-Fuller, Phillips-Perron, Autoregressive distributed lag (ARDL) bound tests, Johansen and Juselius, Bayer-Hanck cointegration test, and several key diagnostic tests have been conducted to assess the relationship. The estimated results indicate that tourist arrivals, gross domestic product, and financial development have a significant long-run cointegrating relationship with energy consumption. Policy measures are suggested based on the findings of this study.

Keywords: energy consumption; international tourist arrivals; financial development; ARDL; Australia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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