Does tourism development, financial development and renewable energy drive high-quality economic development?

Abstract

Tourism development is generally agreed upon to be a key tool in promoting economic growth, and green development has emerged as a significant idea and an efficient approach to accomplish this goal in a manner that is environmentally responsible. It is common knowledge that making the switch to renewable sources of energy may act as a catalyst for economic development in both developed and developing nations. Therefore, people all over the globe are beginning to realize the significance of advancing renewable energy's rising importance that suggests that it will be used extensively in the years to come. The purpose of this study is to examine the effect that increasing tourism and adopting renewable energy sources impact on green economic growth development in the region using the AMG test BRICS nations from 2001 to 2022. This research additionally makes use of a rigorous check by means of the CCEMG exam and the DCCEMG test. According to the findings, green economic growth is influenced favorably by the expansion of the tourist industry, renewable energy, and the digital economy, but urbanization and the rise financial industry are detrimental to green economic growth. D-H panel causality test results show that tourism development is causally related to green economic growth, green economic growth to urbanization, and green economic growth to the usage of renewable energy sources. According to these results, the management authorities of BRICS nations should embrace policies of green growth while also controlling environmental pollution in order to achieve sustainable economic development whereas in rural areas. The findings have major policy implications for the nations that make up the BRICS bloc. These implications pertain to the enhancement of tourist development, the digital economy (DIG), and financial institutions, all of which have the potential to improve environmental quality.