Revisiting the Dynamics of Tourism, Economic Growth, and Environmental Pollutants in the Emerging Economies—Sustainable Tourism Policy Implications

Asif Khan,Jiaying Lyu,Lorenzo Ardito,Anas Arif,Sughra Bibi,Hizar Hayat

doi:10.3390/su12062533

Abstract

Tourism contributions to economic growth and well-being have been widely acknowledged; however, its impacts on the environment demand an integrated approach to policy improvement across institutions in the emerging economies for the development of sustainable tourism practices. This study investigates the causal relationship between tourism, economic growth (GDP, capital investment), energy consumption, and environmental pollutants in developing economies, explicitly focusing on the case of Pakistan. Various econometric procedures and techniques were applied to test the proposed hypotheses. The findings suggest that economic growth support tourism development. Tourists’ arrivals have a significant positive impact on energy consumption, capital investment, and CO2 emissions; besides, environmental pollutant (CO2) causes negative effects on tourism. The results suggest that a 1 unit increase in tourism increases CO2 emissions metric tons per capita by 0.26 units in the long-run. A 1 unit increase in capital investment increases CO2 emissions metric tons per capita by 0.21 units, and a 1 unit increase in energy consumption increases CO2 emissions metric tons per capita by 0.51 units in the long-run. In the short-run, a 1 unit increase in tourism, capital investment, and energy consumption rises CO2 emissions metric tons per capita by 0.045, 0.04, and 0.08 units, respectively. Sustainable tourism remains a sole option in developing economies to enhance the competitiveness of tourism as a tool for friendly developments. Thus, tourism policies are needed to be integrated with overall economic, environmental, and energy policies to encourage the shift towards sustainable tourism development to minimize environmental pollution.

Highlights

Tourism, as one of the most encouraging drivers of development for the world economy, can play a dynamic role in the evolution of a green economy and inclusive growth [1]
The findings of the current study suggest a bidirectional causality between tourism and CO2 emissions, indicating that tourism leads to CO2 emissions; CO2 emissions have a negative impact on tourism development
The findings show that energy consumption, economic growth, and capital investment have significant positive influences on tourism except for CO2 emissions that negatively contribute to tourism

Summary

Introduction

As one of the most encouraging drivers of development for the world economy, can play a dynamic role in the evolution of a green economy and inclusive growth [1]. Developing economies, having a low level of industrial development, heavily rely on their agriculture for export earnings [5]. Regardless of the constant efforts of developing economies to enhance their exports, this approach added petite foreign exchange to their balance of payments and proved ineffective in economic development [4]. Tourism is seen as a savior in the developing economies due to its leading capabilities of earning foreign exchange [6]. This notion leads to an unplanned expansion of tourism, which puts enormous pressure on natural resources and results in deforestation, massive urbanization, loss of wetlands, and water and air pollution in these countries [7]

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Conclusion