Skip to main content
Book cover

Strategies in Sustainable Tourism, Economic Growth and Clean Energy pp 125–140Cite as

Testing the Dynamic Relationship Among CO2 Emissions, Economic Growth, Energy Consumption and Tourism Development. Evidence for Uruguay

  • 562 Accesses

Abstract

Carbon dioxide (CO2) emission is directly linked with energy usage and plays an essential role in the debate on sustainable tourism development and environmental protection. Some authors argue that tourism faces the problem of being “addicted” to growth, which is incompatible with sustainable goals. The literature shows that the environmental Kuznets curve (EKC) hypothesis induced by tourism is verified, with some differences between developed and developing economies. Previous country-studies usually apply linear cointegration techniques and Granger causality tests in order to test the EKC hypothesis. This study explores the linkages between CO2 emissions, economic growth, energy consumption and tourism development for Uruguay without imposing—a priori—any parametric model, in order to investigate the presence of nonlinearity in the relation, as postulated by the EKC hypothesis. This paper examines the dynamic long-run relationship among these variables, using data from 1960 to 2014. We test the existence of nonlinear cointegration relationship and the causality applying nonparametric tests. We find that this methodology provides a more suitable way to represent linkages between the variables under study for Uruguay. Nevertheless, the evidence regarding the causality between tourism growth and CO2 emissions is weak. Finally, we discuss policy implications, limitations, and future research.

Keywords

  • Tourism-induced EKC hypothesis
  • Nonlinear cointegration
  • Nonparametric causality tests
  • Uruguay

JEL Codes

  • C30
  • E43
  • L83

This is a preview of subscription content, access via your institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-59675-0_7
  • Chapter length: 16 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   169.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-59675-0
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   219.99
Price excludes VAT (USA)
Hardcover Book
USD   219.99
Price excludes VAT (USA)
Learn about institutional subscriptions
Fig. 7.1

Source World Bank

Notes

  1. 1.

    New Zealand, Norway, Sweden, Germany, Australia, Switzerland, Maldives, The Netherlands, Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Turks and Caicos.

  2. 2.

    Ozturk et al. (2015) point that most of the existing literature employed environmental indicators such as CO2 emissions, sulfur dioxide (SO2), dark matter (fine smoke), and suspended particle matter (SPM) as the endogenous variables. Nevertheless, these indicators only represent a small portion of the environmental degradation caused by tourism.

References

  • Akbostanci, E., Türüt-Asik, S., & Tunç, G. I. (2009). The relationship between income and environment in Turkey: Is there an environmental Kuznets curve? Energy Policy, 37(3), 861–867.

    CrossRef  Google Scholar 

  • Alam, M. J., Begum, I. A., Buysse, J., Rahman, S., & Huylenbroeck, G. V. (2011). Dynamic modeling of causal relationship between energy consumption, CO2 emissions and economic growth in India. Renewable and Sustainable Energy Reviews, 15, 3243–3251.

    CrossRef  Google Scholar 

  • Ang, J. B. (2008). Economic development, pollutant emissions and energy consumption in Malaysia. Journal of Policy Modeling, 30, 271–278.

    CrossRef  Google Scholar 

  • Becken, S., Frampton, C., & Simmons, D. G. (2001). Energy consumption patterns in the accommodation sector-the New Zealand case. Ecological Economics, 39(3), 371–386.

    CrossRef  Google Scholar 

  • Becken, S., Simmons, D. G., & Frampton, C. (2003). Energy use associated with different travel choices. Tourism Management, 24, 267–277.

    CrossRef  Google Scholar 

  • Breitung, J. (2001). Rank test for nonlinear cointegration. Journal of Business & Economics Statistics, 19(3), 331–340.

    CrossRef  Google Scholar 

  • Breitung, J. (2002). Nonparametric tests for unit roots and cointegration. Journal of Econometrics, 108, 343–363.

    CrossRef  Google Scholar 

  • Brida, JG, Lanzilotta, B., Pereyra, J.S. & Pizzolon, F. (2013a) The tourism-led growth hypothesis: A comparative study for the MERCOSUR countries. Revista de Economia Mundial 75–96.

    Google Scholar 

  • Brida, J. G., Lanzilotta, B., Pereyra, J. S., & Pizzolon, F. (2013). A nonlinear approach to the tourism-led growth hypothesis: The case of the MERCOSUR. Current Issues in Tourism, 18(7), 647–666.

    CrossRef  Google Scholar 

  • Brida, J. G., Cortes-Jimenez, I., & Pulina, M. (2014). Has the tourism-led growth hypothesis been validated? A literature review. Current Issues in Tourism., 19, 1–37. https://doi.org/10.1080/13683500.2013.868414

    CrossRef  Google Scholar 

  • Coondoo, D., & Dinda, S. (2002). Causality between income and emission: A country group specific econometric analysis. Ecological Economics, 40, 351–367.

    CrossRef  Google Scholar 

  • Davidson, J. (2002). Establishing conditions for the functional central limit theorem in nonlinear and semiparametric time series processes. Journal of Econometrics, 106(2), 243–269.

    Google Scholar 

  • Dinda, S. (2004). Environmental Kuznets curve hypothesis: A survey. Ecological Economics, 49(4), 431–455.

    CrossRef  Google Scholar 

  • De Vita, G., Katircioglu, S., Altinay, L., Fethi, S., & Mercan, M. (2015). Revisiting the environmental Kuznets curve hypothesis in a tourism development context. Environmental Science and Pollution Research, 22(21), 16652–16663.

    CrossRef  Google Scholar 

  • Dogan, E., Seker, F., & Bulbul, S. (2015). Investigating the impacts of energy consumption, real GDP, tourism and trade on CO2 emissions by accounting for cross-sectional dependence: A panel study of OECD countries. Current Issues in Tourism, 20(16), 1701–1719.

    CrossRef  Google Scholar 

  • Dubois, G., Peeters, P., Ceron, J. P., & Gössling, S. (2011). The future tourism mobility of the world population: Emission growth versus climate policy. Transportation Research Part A, 45, 1031–1042.

    Google Scholar 

  • Friedl, B., & Getzner, M. (2003). Determinants of CO2 emissions in a small open economy. Ecological Economics, 45(1), 133–148.

    CrossRef  Google Scholar 

  • Gössling, S. (2002). Global environmental consequences of tourism. Global Environmental Change, 12(4), 283–302.

    CrossRef  Google Scholar 

  • Gössling, S. (2013). National emissions from tourism: An overlooked policy challenge? Energy Policy, 59(2013), 433–442.

    CrossRef  Google Scholar 

  • Granger, C. W. J. (1995). Modelling nonlinear relationship between extended-memory variables. Econometrica, 63, 265–279.

    CrossRef  Google Scholar 

  • Grossman, G.M. & Krueger, A.B. (1991). Environmental impacts of a North American free trade agreement. NBER Working Papers. 3914. National Bureau of Economic Research, Inc.

    Google Scholar 

  • He, J., & Richard, P. (2010). Environmental Kuznets curve for CO2 in Canada. Ecological Economics, 69(5), 1083–1093.

    CrossRef  Google Scholar 

  • Holden, A. (2009). The environment-tourism nexus influence of market ethics. Annals of Tourism Research, 36, 373–389.

    CrossRef  Google Scholar 

  • Holmes, J. M., & Hutton, P. A. (1990). On the Causal Relationship Between Government Expenditures and National Income. the Review of Economics and Statistics, 72(1), 87–95.

    CrossRef  Google Scholar 

  • Katircioglu, S. T. (2014a). Testing the Tourism-Induced EKC Hypothesis: The Case of Singapore. Economic Modeling, 41, 383–391.

    CrossRef  Google Scholar 

  • Katircioglu, S. T. (2014b). International tourism, energy consumption, and environmental pollution: The case of Turkey. Renewable & Sustainable Energy Reviews, 36, 180–187.

    CrossRef  Google Scholar 

  • Katircioglu, S. T., Feridun, M., & Kilinc, C. (2014). Estimating tourism-induced energy consumption and CO2 emissions: The case of Cyprus. Renewable & Sustainable Energy Reviews, 29, 634–640.

    CrossRef  Google Scholar 

  • Lee, J. W., & Brahmasrene, T. (2013). Investigating the influence of tourism on economic growth and carbon emissions: Evidence from panel analysis of the European Union. Tourism Management, 38, 69–76.

    CrossRef  Google Scholar 

  • Lin, T. P. (2010). Carbon dioxide emissions from transport in Taiwan’s national parks. Tourism Management, 31(2), 285–290.

    CrossRef  Google Scholar 

  • Lindmark, M. (2002). An EKC-pattern in historical perspective: Carbon dioxide emissions, technology, fuel prices and growth in Sweden 1870–1997. Ecological Economics, 42, 333–347.

    CrossRef  Google Scholar 

  • List, J. A., & Gallet, C. A. (1999). The environmental Kuznets curve: Does one size fit all? Ecological Economics, 31(3), 409–423.

    CrossRef  Google Scholar 

  • Luzzati, T., & Orsini, M. (2009). Natural environment and economic growth: Looking for the energy-EKC. Energy, 34, 291–300.

    CrossRef  Google Scholar 

  • Neto, F. (2003). A new approach to sustainable tourism development: Moving beyond environmental protection. Nat Res Forum, 27, 212–222.

    CrossRef  Google Scholar 

  • Ozturk, I., & Acaravci, A. (2010). CO2 emissions, energy consumption and economic growth in Turkey. Renewable and Sustainable Energy Reviews, 14(9), 3220–3225.

    CrossRef  Google Scholar 

  • Ozturk, I., Al-Mulali, U., & Saboori, B. (2015). Investigating the environmental Kuznets curve hypothesis: The role of tourism and ecological footprint. Environmental Science and Pollution Research International, 23(2), 1916–1928.

    CrossRef  Google Scholar 

  • Paramati, S. R., Alam, M. S., & Chen, C. F. (2017). The effects of tourism on economic growth and CO2 emissions: A comparison between developed and developing economies. Journal of Travel Research, 56(6), 712–724.

    CrossRef  Google Scholar 

  • Perch-Nielsen, S., Sesartic, A., & Stucki, M. (2010). The greenhouse gas intensity of the tourism sector: The case of Switzerland. Environmental Science and Pollution, 13, 131–140.

    CrossRef  Google Scholar 

  • Risso, Wiston Adrian (2018). Tourism and Economic Growth: A Worldwide Study. Tourism Analysis Volume 23, Number 1, 2018, pp. 123–135(13).

    Google Scholar 

  • Saenz-de-Miera, O., & Rosselló, J. (2014). Modeling tourism impacts on air pollution: The case study of PM10 in Mallorca. Tourism Management, 40, 273–281.

    CrossRef  Google Scholar 

  • Shafik, N., & Bandyopadhyay, S. (1992). Economic growth and environmental quality: Time series and cross-country evidence. The World Bank, Washington, DC: Background Paper for the World Development Report.

    Google Scholar 

  • Sarkodie, S. A., & Strezov, V. (2019). A review on environmental Kuznets curve hypothesis using bibliometric and meta-analysis. Science of the Total Environment, 649, 128–145.

    CrossRef  Google Scholar 

  • Solarin, S.A. (2014). Tourist arrivals and macroeconomic determinants of CO2 emissions in Malaysia. Anatolia: An International Journal of Tourism and Hospitality Research, 25(2), 228–241.

    Google Scholar 

  • Soytas, U., Sari, R., & Ewing, B. T. (2007). Energy consumption, income, and carbon emissions in the United States. Ecological Economics, 62, 482–489.

    CrossRef  Google Scholar 

  • Stern, D. I. (2004). The rise and fall of the environmental Kuznets curve. World Development, 32(8), 1419–1439.

    CrossRef  Google Scholar 

  • Stock, J. H., & Watson, M. W. (1993). A simple estimator of cointegrating vector in higher order integrated systems. Econometrica, 61, 783–820.

    CrossRef  Google Scholar 

  • Tsai, K. T., Lin, T. P., Hwang, R. L., & Huang, Y. J. (2014). Carbon dioxide emissions generated by energy consumption of hotels and home stay facilities in Taiwan. Tourism Management, 42, 13–21.

    CrossRef  Google Scholar 

  • World Travel and Tourism Council. (2018). Travel & Tourism Economic Impact 2018.

    Google Scholar 

  • Xing-Ping, Z., & Xiao-Mei, C. (2009). Energy consumption, carbon emissions, and economic growth in China. Ecological Economics, 68, 2706–2712.

    CrossRef  Google Scholar 

  • Xuchao, W., Priyadarsini, R., & Eang, L. S. (2010). Benchmarking energy use and greenhouse gas emissions in Singapore’s hotel industry. Energy Policy, 38, 4520–4527.

    CrossRef  Google Scholar 

  • Ye Lim, S., Ghazali, M., & Mun Ho, C. (2011). Export and economic growth in Southeast Asia current Newly Industrialized Countries: Evidence from nonparametric approach. Economics Bulletin, 31(3), 2683–2693.

    Google Scholar 

Download references

Acknowledgments

Our research was supported by the CSIC—UDELAR research project “Grupo de Investigación en Dinámica Económica—GIDE”.

Author information

Authors and Affiliations

  1. Facultad de Ciencias Económicas y de Administración, Research Group in Economic Dynamics (GIDE), Universidad de la República, Montevideo, Uruguay

    Juan Gabriel Brida, Bibiana Lanzilotta & Fiorella Pizzolon

Authors
  1. Juan Gabriel Brida
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Bibiana Lanzilotta
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Fiorella Pizzolon
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Juan Gabriel Brida .

Editor information

Editors and Affiliations

  1. University of Castile-La Mancha, Cuenca, Cuenca, Spain

    Prof. Daniel Balsalobre-Lorente

  2. University of Alicante, Alicante, Spain

    Oana M. Driha

  3. Beijing Institute of Technology, Beijing, China

    Prof. Muhammad Shahbaz

Appendix 1: Causality Test (Holmes and Hutton)

Appendix 1: Causality Test (Holmes and Hutton)

See Tables 7.4 and 7.5.

Table 7.4 Regression in levels
Full size table
Table 7.5 Regression in first differences
Full size table

Rights and permissions

Reprints and Permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Verify currency and authenticity via CrossMark

Cite this chapter

Brida, J.G., Lanzilotta, B., Pizzolon, F. (2021). Testing the Dynamic Relationship Among CO2 Emissions, Economic Growth, Energy Consumption and Tourism Development. Evidence for Uruguay. In: Balsalobre-Lorente, D., Driha, O.M., Shahbaz, M. (eds) Strategies in Sustainable Tourism, Economic Growth and Clean Energy. Springer, Cham. https://doi.org/10.1007/978-3-030-59675-0_7

Download citation