Tourism Growth Dynamics and Their Impact on the Economy and Carbon Emissions in Asia: A Review of High-Income Countries
Abstract
Asia, home to 60% of the world's population, is renowned for its stunning landscapes, diverse cultures, rich historical heritage, and delectable cuisine, all of which contribute significantly to the region's booming tourism industry and economic growth. However, the rise in tourism also escalates energy consumption, particularly fossil fuel use, leading to long-term increases in surface temperatures due to carbon dioxide (CO2) emissions. This study empirically examines the impact of tourism growth dynamics on the economy and carbon emissions in 10 high-income Asian countries using panel data analysis. The period from 2009 to 2019 was chosen to capture the normal state of the global tourism sector. Employing a more efficient panel econometric technique, seemingly unrelated regression (SUR), which is applicable when there is correlation among the error terms in the models used, the study achieves its objectives. The first equation indicates that tourism positively and significantly affects the economy. Meanwhile, the second equation reveals that tourism significantly contributes to increased CO2 emissions in high-income Asian countries. Although tourism generally boosts the economy, the travel characteristics of Asia necessitate greater focus on environmental quality mitigation and adaptation before sustainable tourism can be established.
Keywords: tourism, economy, carbon emissions, high income, seemingly unrelated regression.
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