The Impacts Of Inbound Tourism Activities And Macroeconomic Variables On Environmental Degradation In Asean-4

Ekan Widiarso,Agus Luthfi,Regina Niken Wilantari

doi:10.21107/mediatrend.v14i2.4646

Abstract

This study aims to analyze the impacts and causal relationship between inbound tourism activities and macroeconomic variables on environmental degradation and to analyze the environmental degradation response due to shocks that occur in inbound tourism activities and macroeconomic variables in four countries with the highest international tourist visits in the ASEAN region of Indonesia, Malaysia, Singapore and Thailand known as ASEAN-4 for Periode 1995-2015. The method used in the research is panel vector error correction model (PVECM). The results showed that inbound tourism activities positively influence in the long-term and short-term environmental degradation in ASEAN-4. Among macroeconomic variables only gross domestic product (GDP) positively affects environmental degradation in the long term and short term whereas energy consumption only affects environmental degradation in the short term. There is a direct causal relationship of inbound tourism activity with environmental degradation and environmental degradation with GDP. Energy consumption and environmental degradation manifest bidirectional causality with a feedback effect. Impulse response function indicates environmental degradation responds negatively to the shocks that occur in Inbound tourism and GDP activities. The positive response is indicated by environmental degradation in case of shock to energy consumption.

Highlights

Over the last two decades, the threat of climate change due to increased global warming has been a major environmental challenge
The study results show that tourism and energy consumption are in long-run equilibrium relationships with CO2 emissions; about 91.01 percent per year, the contribution of carbodioxide emissions to the tourism induction model is from tourism, energy consumption, and aggregate income
Carbon dioxide (CO2) does not significantly affect tourism receipts (RCPT). directional causality is shown from CO2 to gross domestic product (GDP), evidenced by a probability value that is smaller than the alpha of 5 percent is 0.0023

Summary

Introduction

Over the last two decades, the threat of climate change due to increased global warming has been a major environmental challenge. Increased levels of carbon dioxide (CO2) emissions are considered as one of the main causes of global warming and climate instability. Climate change is an important environmental threat to note in the modern era and described as the world’s largest market failures. Greenhouse gases such as carbon dioxide, methane (CH4) and nitrous oxide (N2O) emitted through human activities are the largest source of climate change. Many studies have sought to uncover the factors that determine carbon dioxide emission levels to produce policy options that mitigate climate change (Ohlan, 2017)

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Conclusion