Quantile lens on carbon footprints: Renewable energy, tourism, financial development, and the pursuit of Sustainable Development Goals 2030

Abstract

The pursuit of sustainable development goals (SDGs) by 2030 has become a global imperative, necessitating a comprehensive examination of factors influencing carbon footprints across various sectors. In light of varying levels of sensitivity among the top five tourist countries—France, Spain, the United States, Turkey, and Italy—to renewable energy, tourism, financial development, and sustainable development goals (SDGs), this study addresses the challenge of effectively harnessing these factors to achieve comprehensive carbon emissions reduction and sustainable development objectives. By taking data from 1997 to 2021, novel panel quantile regression analysis is performed to ascertain the long-run impacts in lower, middle, and upper quantiles. It finds that renewable energy investments and eco-friendly tourism practices, supported by financial development initiatives, can substantially reduce carbon dioxide emissions in top tourist destinations. These measures are essential for maintaining the concerns of the economy and environmental preservation. Renewable energy and financial development unequivocally lead to decreased carbon emissions in the middle and higher quantiles. Tourism development leads to an escalation in carbon emissions approximately in all the quantiles, i.e., from 0.10 to 0.90. The findings of this study underscore that it is crucial to implement specific measures to encourage the use of renewable energy, environmentally friendly practices in tourism, and sustainable financial initiatives. It will not only effectively reduce carbon emissions in top tourist destinations, but also make progress towards achieving sustainable development goals by 2030.