Tourist Arrivals, Energy Consumption and Pollutant Emissions in a Developing Economy - Implications for Sustainable Tourism

26 Pages Posted: 16 Jan 2019

See all articles by M. Indra al Irsyad

M. Indra al Irsyad

School of Earth and Environmental Sciences, University of Queensland

Rabindra Nepal

Tasmanian School of Business and Economics, University of Tasmania

Sanjay Kumar Nepal

University of Waterloo

Date Written: January 16, 2019

Abstract

Sustainable tourism management policies should aim at maximising economic benefits from tourist arrivals while minimizing associated adverse impacts on the environment. This study assesses the short-run and long-run relationships between tourist arrivals, per capita economic output, emissions, energy consumption and capital formation, citing Nepal as a specific case study. We developed four hypotheses and tested them using time-series econometrics based on the autoregressive distributed lag model and Granger causality tests. The results provide strong evidence of an economy driven tourism sector where expansion in economic output leads to expansion in tourist arrivals. More tourist arrivals, in turn, generate positive impacts on gross capital formation. Energy consumption negatively affects tourist arrivals, calling for increased attention towards improving energy efficiency and energy diversity. We conclude that national policies to increase tourist arrivals should be integrated with national energy and environmental policies in order to facilitate the transition towards a sustainable tourism sector.

Keywords: sustainable tourism, Autoregressive distributed lag (ARDL), Granger causality, energy consumption, climate change

JEL Classification: Z32, Z38, C32

Suggested Citation

al Irsyad, M. Indra and Nepal, Rabindra and Nepal, Sanjay Kumar, Tourist Arrivals, Energy Consumption and Pollutant Emissions in a Developing Economy - Implications for Sustainable Tourism (January 16, 2019). CAMA Working Paper No. 03/2019, Available at SSRN: https://ssrn.com/abstract=3316490 or http://dx.doi.org/10.2139/ssrn.3316490

M. Indra al Irsyad

School of Earth and Environmental Sciences, University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Rabindra Nepal (Contact Author)

Tasmanian School of Business and Economics, University of Tasmania ( email )

French Street
Sandy Bay
Tasmania, 7250
Australia

Sanjay Kumar Nepal

University of Waterloo ( email )

Waterloo, Ontario N2L 3G1
Canada

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