Energy Integration as a Catalyst for Tourism Growth and Economic Stability: Evidence From European Nations

Abstract

The growing global demand for sustainable energy highlights the need for further advancements in solar energy, especially in the world’s largest economies. This study examines the impact of solar energy consumption (SEC) on tourism growth in European countries, specifically Austria, Belgium, Bulgaria, the Czech Republic, France, Germany, Greece, Italy, the Netherlands, and Spain, which exhibit significant SEC and substantial tourism inflows, from 2000 to 2021. Using a comprehensive panel data analysis, the study employs the method of moments quantile regression (MMQRG) approach to evaluate this relationship across different quantiles. The findings reveal a significant positive effect, indicating that a 1% augmentation in solar utilization results in a 0.37% increase in tourism. Additionally, SEC positively influences the information and communication technology (ICT) sector, with a 1% increase in solar energy use leading to a 1.097% rise in ICT development. Furthermore, greater solar energy adoption reduces carbon dioxide (CO₂) emissions, reinforcing its environmental benefits. The results underscore the importance of solar energy investment in fostering sustainable tourism and economic development. This study provides valuable insights for governments, businesses, and stakeholders seeking to leverage solar energy to drive tourism expansion and environmental sustainability.