Dynamic linkages between tourism development, renewable energy and high-quality economic development: Evidence from spatial Durbin model

Abstract

There has been a shift in focus toward environmentally and economically sustainable forms of economic growth known as High-quality economic development (HQED). However, this study analyzes the impact of tourism development (TD) and renewable energy consumption on HQED in 30 provinces of China, while covering the time period from 2007 to 2021. TD and HQED has been measured with help of Global Moran Index. This study has used dynamic spatial Durbin model (SDM) to measure the dynamic impact of TD index and renewable energy consumption on HQED along with green finance, foreign direct investment and investment in education. The findings from empirical analysis shows that TD has negative impact on HQED and in more developed regions, the relationship is positive, while in the less developed western part of China, the U-shape has been reversed. Central and northeastern China have a U-shaped connection, while it has been noticed the interaction term of TD and renewable energy endorses HQED. In addition, renewable energy consumption, green finance and increase in education investment have positive and significant impact on HQED while foreign direct investment has negative impact on HQED in China. Therefore, in the light of this study policymakers should focus on the quality of tourism industry, green finance for renewable energy supply and enhancing education investment in China to attain the goal of HQED.