Trends of Energy Consumption in Muslim Countries: Capturing the Effects of Tourism and Government Effectiveness

Abstract

The focus of this study is to check how energy consumption is affected by tourism, FDI, and urban population in the Muslim nations keeping in view the role of government effectiveness during 2001-2022. The empirical analyses are based on slope homogeneity tests, cross-sectional dependency tests, unit root test and Panel ARDL tests. The empirical evidence suggests that carbon emissions, tourism, foreign direct investment, and urban population increase all have a positive impact on energy consumption. On the other hand, the efficiency of governance appears to have the opposite effect on energy use. Reducing carbon emissions while concurrently increasing energy efficiency, shifting to renewable energy sources, and minimizing the negative effects of energy usage on the environment and society is a worldwide necessity.