Are tourism and energy consumption linked? Evidence from Australia
Article
Article Title | Are tourism and energy consumption linked? Evidence from Australia |
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ERA Journal ID | 41498 |
Article Category | Article |
Authors | Khanal, Avishek (Author), Rahman, Mohammad Mafizur (Author), Khanam, Rasheda (Author) and Velayutham, Eswaran (Author) |
Journal Title | Sustainability |
Journal Citation | 13 (19), pp. 1-21 |
Article Number | 10800 |
Number of Pages | 21 |
Year | 2021 |
Publisher | MDPI AG |
Place of Publication | Switzerland |
ISSN | 2071-1050 |
Digital Object Identifier (DOI) | https://doi.org/10.3390/su131910800 |
Web Address (URL) | https://www.mdpi.com/2071-1050/13/19/10800 |
Abstract | Tourism contributes to the growth of an economy via earning foreign currencies and employment opportunities. However, tourism also contributes to greater energy consumption because of various tourist activities such as hotel accommodations and transportation. This study investigates the long-term cointegrating relationship between international tourist arrivals and primary energy consumption in Australia. In addition, the roles of gross domestic product, gross fixed capital formation, financial development, and total population on energy consumption are also examined. The study covered the last four decades (1976–2018) using data from the Australian Bureau of Statistics, BP Statistical Review, and the World Development Indicators. Augmented Dickey- Fuller, Phillips-Perron, Autoregressive distributed lag (ARDL) bound tests, Johansen and Juselius, Bayer-Hanck cointegration test, and several key diagnostic tests have been conducted to assess the relationship. The estimated results indicate that tourist arrivals, gross domestic product, and financial development have a significant long-run cointegrating relationship with energy consumption. Policy measures are suggested based on the findings of this study. |
Keywords | energy consumption; international tourist arrivals; financial development; ARDL; Australia |
ANZSRC Field of Research 2020 | 350801. Impacts of tourism |
Byline Affiliations | School of Business |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q6qvw/are-tourism-and-energy-consumption-linked-evidence-from-australia
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