Striving towards carbon neutrality in emerging markets: the combined influence of international tourism and eco-friendly technology

ABSTRACT

In the past few decades, the tourism and hospitality sector has not only witnessed significant growth but also contributed tremendously to economic progress with lease inputs. This fastest-growing sector creates a number of environmental challenges, especially in emerging markets where the carbon footprint of tourism constitutes a large share of CO₂ emissions. This study explores the effect of international tourism, renewable energy consumption (REN), and eco-friendly technology on CO₂ emissions in emerging markets. The AMG, Driscoll-Kraay and Prais-Winsten regression confirm the adverse effects of international tourism on the environment, whereas technological innovation and REN mitigate CO₂ emissions. Furthermore, economic growth and population increase CO₂ emissions, while foreign direct investment (FDI) reduces CO₂ emissions. Although the direct effect of technological innovation is insignificant, the indirect impact is negative and statistically significant; confirming the moderating effect of eco-friendly technology on the relationship between international tourism and CO₂ emissions. The MMQR results suggest that REN reduces CO₂ emissions across all quantiles. On the other hand, technological innovation significantly reduces CO₂ emissions in lower and median quantiles, whereas international tourism and economic growth reduce CO₂ emissions across all quantiles. Various directions of causality were reported alongside relevant policy directions.

KEYWORDS:

• International tourism
• renewable energy consumption, eco-friendly technology
• MMQR
• emerging markets
• ecological footprint

Data availability statement

Data used in the study are available form http://data.footprintnetwork.org., https://data.worldbank.org , and https://www.oecd-ilibrary.org/environment/patents-on-environment-technologies/indicator/english_fff120f8-en.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

No funding was received for this study.