Environmental quality and energy import dynamics

Abstract

Purpose The geographical location and the ambiance of the Coastline Mediterranean Countries (CMCs) advantageously present the region as a tourist destination with rich cultures. The paper aims to discuss this issue. Design/methodology/approach As such, this study investigates the dynamics of energy import and environmental quality in relation to international tourism development for nine CMCs over the period 1995–2013 using a pooled mean group approach. Findings Although the impacts of energy import, CO2 (here as environmental quality) and GDP on international tourism receipts are observed to be significant and negative, international tourist arrival expectedly exerts positive and significant impact, all at the adjustment speed of 0.19. A heterogeneously robust Granger non-causality test further reveals a strong one-directional causal relationship from energy import to tourism receipts. Research limitations/implications The dynamics of the energy market amidst persistent evolution of new source(s) of energy would evidently play a significant role in the region’s tourism sector. It then suggests policy direction to governments of the region and by extension the global tourism market. Originality/value By providing insight into the nexus of environment, energy and tourism development, the current study is the first that addresses the concern in the context of the CMCs.