Does tourism have an impact on carbon emissions in Asia? An application of fresh panel methodology

This research investigates the effects of tourism, GDP per capita, renewable energy, energy intensity, urbanization, and population on the environment in 40 Asian countries. Data from 1995 to 2019 are used in this analysis. Slope heterogeneity (SH), cross-sectional dependency (CSD), and the combination of level and first differenced stationary are all addressed using a new cross-sectionally autoregressive distributed lag (CS-ARDL) model in this work. Using Westerlund's cointegration method, these variables can be connected throughout time. To validate the findings, both augmented mean groups (AMG) and Common correlated effect mean groups (CCEMG) were utilized. The study results indicate that tourism helps slow the degradation of the natural environment. CO₂ emissions increase as a result of variables such as population growth, energy use, and economic development. Only tourism and renewable energy can help cut CO₂ emissions. As a consequence, CS-ARDL results are supported by results from AMG and CCEMG tests. Policymakers may be encouraged countries to adopt renewable energy and foster the expansion of the sustainable tourism industry.