Paper Title
TOURISM AND CO2 EMISSIONS IN SUB-SAHARAN AFRICAN COUNTRIES: A TEST OF TOURISM-INDUCED ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS
Abstract
Abstract - Although the environmental Kuznets curve (EKC) has been investigated extensively in the literature, very few studies have fully explored its link to the tourism sector, which is popularly known as the tourism-induced environmental Kuznets curve (T-EKC). Although tourism inflows contribute significantly to economic growth and development, they may also lead to environmental degradation in the form of CO2 emissions at both national and international levels. This is mainly because most tourism activities themselves require energy consumption from fossil fuels or electricity which, in most cases, are generated from coal, natural gas or oil. Despite the fact that tourism has the potential to lead to environmental degradation, a well-managed tourism that promotes the use of environment-friendly technology and transportation, can also contribute to environmental protection (see UNEP, 2008).
It is against this background that the current study aims to examine the relationship between tourism and CO2 emissions in selected sub-Saharan African (SSA) countries during the period between 1980 and 2021 to examine whether the tourism–CO2 emissions nexus exhibits an inverted U-shaped curve.
Unlike some of the previous studies, the current study uses three datasets, namely i)full sample dataset for all SSA countries; ii)low-income counties’ dataset; and iii)middle-income countries’ dataset. The study also employs a wide range of modern panel data econometric techniques to examine this linkage. These include, amongst others 1)four cross-section dependence tests; 2)second-generation unit root test by Pesaran(2007)and the second-generation cointegration test by Westerlund (2007); 3)slope homogeneity tests by Pesaran and Yamagata test(2008) and Roy-Zellner test; 4)dynamic common correlated effects MG and PMG; and5)Dumitrescu and Hurlin(2012) panel heterogenous Granger-causality test.
To our knowledge, this may be the first study of its kind to examine this linkage on this scale in SSA countries using modern econometric techniques. The data used in the study are obtained from the World Bank’s World Development Indicators.