Investigating the Influence of Tourism, GDP, Renewable Energy, and Electricity Consumption on Carbon Emissions in Low-Income Countries

Abstract

Due to a rapidly growing population and economy, an increase in emissions from urban growth, industrial growth, and energy use hurt the environment’s health. This research examines how tourism, population, income, renewable energy, and electricity consumption affect carbon emissions in twenty-six low-income countries. There is no cross-sectional dependence (CSD) problem, so quantile regressions (QR) and generalized method of moments (GMM) are used. Results show that the environment is obtaining benefits because of tourism. CO2 emissions are rising because the per capita income, electricity consumption, and population are growing. CO2 emissions can be lowered by using more renewable energy and growing the economy faster. Environmental Kuznets Curve (EKC) is also valid in low-income countries. Thus, increasing income will not be harmful to the environment. Similarly, increasing tourism, renewable energy, and rising GDP per capita benefit low-income countries. The government can focus on sustainable tourism. Policymakers may convince more people to use renewable energy resources and grow the sustainable tourism industry. This study recommends that the government reduce greenhouse gas emissions, promote tourism that is good for the environment, take initiatives to limit population growth, and use renewable energy.

Keywords

• renewable energy
• tourism industry
• low-income countries
• generalized method of moments
• quantile regression
• environmental kuznets curve