The nexus between tourism development, environmental quality and economic growth. Does renewable energy help in achieving carbon neutrality goal?

Abstract

Purpose The current study aims to ascertain the association between tourism development, economic growth and environmental quality by using the short-run and long-run autoregressive distributive lag model. Design/methodology/approach Tourism development has a major role to play in improving a nation’s economic growth. However, it is also blamed for exacerbating environmental pollution because of its massive use of energy (non-renewable energy). Findings The major findings of this research show that renewable energy (RE) use and gross domestic product (GDP) negatively impact carbon dioxide (CO2) emissions in South Africa. Tourism arrivals and CO2 emissions negatively impact GDP, while capital positively impacts GDP in the long run. Practical implications This research recommends the use of RE, since it reduces carbon emissions, and capital, as it remains the major driver of economic growth. Originality/value The originality of the current research is that it uses long-period annual time series data from 1971 to 2019 of South Africa, one of the largest tourist nations in Africa. To the best of the authors’ knowledge, no studies have examined South Africa in this context and minimal research has been conducted to ascertain the impact of the tourism industry on the environment, despite the accusations directed toward it.