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A step toward tourism development: do economic growth, energy consumption and carbon emissions matter? Evidence from Pakistan

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Abstract

This research examines the potential impact of economic growth, carbon emissions, trade, and energy use on tourism development in Pakistan from 1980 to 2018. This study employed the Autoregressive Distributed Lagged technique for the simultaneous estimations of short and long-run associations. The study found a positive impact of energy use, economic growth, and trade openness on tourism development in the short and long run. On the other hand, the study reveals a negative impact of CO2 emissions on tourism development in Pakistan. The study further applied an innovative accounting approach for robust results of the study. The study based on Toda Yamamoto causality approach revealed unidirectional causal association among the study variables. The results, thus, suggest the change in investment decisions as the government and policy makers should encourage investments in services sector rather than polluting industrial sector as the services sector is less polluting and leading sector of the economy. This, in turn, could help attract tourists due to environmentally and economically sustainable growth.

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Authors and Affiliations

  1. College of Tourism and Service Management, Nankai University, Tianjin, People’s Republic of China

    Tafazal Kumail

  2. College of Business and Public Management, Wenzhou-Kean University, Ouhai, People’s Republic of China

    Tafazal Kumail & Wajahat Ali

  3. Department of Tourism Management, Guangxi University, Nanning, People’s Republic of China

    Farah Sadiq

  4. School of Management, Huazhong University of Science and Technology, Wuhan, People’s Republic of China

    Syed Mudasser Abbas

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  1. Tafazal Kumail
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TK was responsible for conceptualization, investigation, and writing of draft and analysis. WA and FS collected, analyzed and interpreted the data regarding variables and conducted formal analysis. All authors read and approved the final manuscript.

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Correspondence to Wajahat Ali.

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Kumail, T., Ali, W., Sadiq, F. et al. A step toward tourism development: do economic growth, energy consumption and carbon emissions matter? Evidence from Pakistan. Environ Dev Sustain 25, 3985–4005 (2023). https://doi.org/10.1007/s10668-022-02226-5

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