The Effect of Financial Development, Renewable and Non-Renewable Energy Consumption and International Tourism on Greenhouse Gas Emission in High-Income Countries from Different Continents

Abstract

Substantial increases in the use of energy resources pose a serious threat to environmental quality in a globalized world. It is of critical importance for countries with high levels of CO2 emission to achieve their goals of emission reduction. As a matter of fact, greenhouse gases — and CO2 in particular — bring about global warming, climate change and many concomitant adversities. This study tries to explain greenhouse gas emissions with financial development, energy consumption, tourism and trade indicators in high income countries from different continents for the period from 1995 to 2017 by panel quantile approach. Results suggest that financial development, fossil fuel energy consumption, and tourism receipts increase emissions in full sample. Also, tourism is critical in explaining the increase in greenhouse gas emissions of high-income countries in American continent. In Asian continent, financial development positively effects on carbon emissions at 10% and 75% quantile levels but affect negatively at 90% quantile level.