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Do tourism and CO2 emission predict technological innovation in developing countries: Examining Porter and innovative Claudia curve hypothesis

Tafazal Kumail, Wajahat Ali, Farah Sadiq and Mujtaba Baqar

Energy & Environment, 2025, vol. 36, issue 5, 2454-2473

Abstract: The accelerating concentration of CO 2 emissions is attributed to human activities worldwide, leading to increased greenhouse gas emissions. There is an outcry for innovations to combat the environmental threat to even the existence of the human race. From this perspective, the current study aims to analyze the significance of technological innovation, tourism development, economic growth, and human development from the environmental perspective under the idea of carbon neutrality from 1996 to 2019. The study utilized dynamic ordinary least squares (DOLS) to estimate the relationship between the study variables and the panel vector error correction model to showcase the variables’ short and long-run connections. Results reveal that CO 2 emissions positively affect technological innovations, which is evidence of the Porter hypothesis. The study showed that the gross domestic product, tourism, and human development index are good innovation indicators and supported the growth-led innovation hypothesis. This study supports the innovative Claudia curve theory between technology and CO 2 emissions. Moreover, the study also investigated the Environmental Kuznets Curve (EKC) hypothesis during the study period. The causality analysis also supports the long-run results of DOLS. Based on the results, the study has implications for future researchers, policymakers, and regulatory bodies in developing countries to achieve carbon neutrality and Agenda 2030.

Keywords: Tourism development; CO2 emissions; technological innovation; Porter hypothesis; innovative Claudia curve; environmental Kuznets curve (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:36:y:2025:i:5:p:2454-2473

DOI: 10.1177/0958305X231222164

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