Interplay of tourism renewable energies, tourism institutional quality, and political risk in OECD economies.

Abstract

It is only possible to achieve the aims of reversing the impacts of the resource constraint and attaining sustainable growth if there is a rise in tourism organizational efficacy and tourism and a decrease in political instability. This is because these factors can influence the demand for energy by causing changes in the amount of power consumed. These factors may affect energy demand via changes in energy transitions. In light of this, the objective of this study is to investigate the impact that critical measures of institutional efficiency, tourism, and policy instability have on the utilization of renewable energy sources in a dataset consisting of 32 countries that are members of the Organization for Economic Co-operation and Development between the years 1997 and 2019. The article uses descriptive statistics and correlation models (cross-section dependency test and autoregressive distributed lag (ARDL) model) using panel data from 32 Organization for Economic Co-operation and Development (OECD) nations from 1997 to 2019. Insight into the matter aids in our selection of appropriate econometric methods. The following methods are briefly explained. Evidence shows that as a society's average wealth and standard of life grow, so does its utilization of renewable energy sources. In addition, the economic globalization process and the danger it entails are adversely associated with a long-term reliance on renewable energy sources. Policymakers in countries that are members of the OECD should investigate the role that institutional effectiveness and policy instability play in the demand function for renewable energy to ensure a cleaner natural environment over the long term.