The Impact of Tourism and Financial Development on Energy Consumption and Carbon Dioxide Emission: Evidence from Post-communist Countries

The purpose of this study is to investigate the causal relationship among energy consumption, carbon emission, financial development, and tourism using a sample of 12 post-communist countries in the period between 1995 and 2014. The results of Pedroni and Kao tests show the cointegration among observed variables. The Granger non-causality test demonstrates that there is bi-directional causality in financial development-tourism and energy-emission nexuses. The one-way causality is identified in cases of tourism-energy, tourism-CO2, finance-energy, and finance-CO2.

Automated summary

The study examines the causal relationship among energy consumption, carbon emission, financial development, and tourism in 12 post-communist countries from 1995 to 2014. The results show cointegration among variables and bi-directional causality in financial development-tourism and energy-emission nexuses. One-way causality is identified in cases of tourism-energy, tourism-CO2, finance-energy, and finance-CO2.