Unlocking the nexus: Tourism, clean energy, innovation, and environmental sustainability in the top 20 tourist nations

Abstract

This study investigates the interplay between tourism activities, renewable energy utilization, and environmental impacts by analyzing a panel of the top 20 tourism nations over the period from 2005 to 2020. This research is motivated by an increasing interest in the intersection of tourism, a significant economic driver, and the objectives of environmental sustainability. The discourse surrounding the impact of tourism on environmental health is substantial, particularly in relation to the adoption of renewable energy and the carbon footprint associated with the sector. The research posits that the advancement of tourism has a beneficial impact on the consumption of renewable energy, subsequently aiding in the promotion of environmental sustainability. This analysis delves into the dual impact of tourism, suggesting that while it has the potential to enhance the utilization of renewable energy, it may concurrently present challenges to the quality of the environment. The investigation utilizes sophisticated econometric modelling methodologies, namely the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) and Nonlinear Autoregressive Distributed Lag (NARDL) models, to analyze these relationships. The methodologies employed facilitate a comprehensive examination of both short-term and long-term impacts within the chosen nations throughout the designated timeframe. The results indicate a statistically significant and positive correlation between the development of tourism and the consumption of renewable energy, thereby reinforcing the hypothesis that an increase in tourism activity is associated with a rise in the utilization of clean energy sources. The observed relationship is consistent across both short-term and long-term analyses, indicating that tourism contributes positively to the adoption of renewable energy. The study reveals that tourism not only facilitates the integration of renewable energy but is also linked to environmental degradation, underscoring the imperative for sustainable practices. The research findings indicate that tourism has the potential to catalyze the adoption of renewable energy, presenting significant advantages for environmental sustainability.