The nexus between economic growth, tourism development, energy consumption, and CO2 emissions in Mediterranean countries.

Abstract

This study aims to analyze the relationship among international tourism, energy consumption, carbon dioxide emissions, and economic growth in Mediterranean countries for the 1995-2014 data period. According to the results of panel quantile regression model for 17 countries, the tourism-led growth hypothesis is valid in low growth levels, but deviations from this hypothesis are determined after the middle growth level. Also, the CO2 coefficient at low growth levels indicated that sustainable growth is achieved, but no significant results are obtained at subsequent growth levels. Finally, energy consumption supports economic growth at low and medium growth levels. Short-run causality test results illustrated that there is bidirectional causality between GDP and all explanatory variables.