Index

Abstract

Tourism has been the fastest-growing sector in the world over the last decade, contributes to employment opportunities, and generates earnings in foreign currencies. Tourism intensively needs energy to promote tourist activities, which in turn causes economic growth. However, as almost all tourist activities, like hotel accommodations and transportation, strongly depend on energy use, it may contribute to increased energy consumption. Our study explores the impact of tourism on energy consumption in the BRICS (i.e., Brazil, Russia, India, China, and South Africa) by using the panel data set of 1995–2014. In this study, feasible generalized least squares (FGLS) and Panel corrected standard error (PCSE) panel regression techniques are used for empirical analysis. The results reveal that tourism has a positive and significant impact on energy consumption. Our findings are robust and unaffected by the use of various energy consumption proxies and econometric techniques. Furthermore, our findings are robust and significant due to the inclusion of various controls such as financial development, gross fixed capital formation, total population, and gross domestic product. The policy implication is that governments should promote the tourism sector as a way to boost the growth of their economies. Sustainable tourism can help these economies achieve sustainable development.

Keywords: BRICS, Economic growth, Energy consumption, Financial development, Tourism industry.

Received: 10 May 2023/ Revised: 13 June 2023/ Accepted: 27 June 2023/ Published: 7 July 2023

Contribution/ Originality

This study examines the impact of tourism on energy consumption. There are three proxies for energy consumption:  primary energy intensity (Energy intensity level of primary energy (MJ/$2011 PPP GDP), energy use (kg of oil equivalent per capita), and electricity consumption (kwh per capita), which have not been used in previous studies on the BRICS.

1. INTRODUCTION

Tourism is considered the most prominent sector and vital industry in the world (Khanal, Rahman, Khanam, & Velayutham, 2021). The World Economic Forum has exposed the 67% recovery of the tourism sector, but it is still below 2019 (Davos, 2022). 2022 has been proposed as the International Year of Sustainable Tourism by the World Tourism Organization. The year 2022 offered a unique opportunity for tourism to be organized and address the challenges set out in the Sustainable Development Goals (UNWTO, 2022). As opined by the World Tourism Organization, tourism is currently one of the largest industries in the world and a key source of income. Being a people-oriented sector, tourism also offers jobs that may help to revive local economies (Stojanovska-Stefanova, Magdinceva Sopova, & Aleksoski, 2021). The tourism sector has grown like sunshine in both developed and less developed nations over the last few decades, and it now ranks among the biggest industries (WEF, 2022). However, tourism, along with its positive role in economic development, also causes more energy use, social dislocation, cultural heritage loss, and ecological degradation (Usman et al., 2022).

The tourism industry possesses the capacity to create employment opportunities, as evidenced by the nearly 330 million job openings it produced worldwide in 2019. Furthermore, it contributed a substantial amount of US$8.9 trillion to the global gross domestic product (GDP), accounting for 10.3 percent of the world's GDP. This suggests that the industry's revenue generation, particularly through tourist arrivals, has had a positive impact on economic growth, even in times of recession. (Kyara, Rahman, & Khanam, 2021). The increase in the number of foreign and domestic tourist arrivals boots the country’s income. Moreover, the tourism sector transfers income from developed nations to developing nations. Although tourism plays a positive role in the growth of a county, it also impairs environmental quality (Rauf et al., 2021). International tourism development and the enhancement of international tourists not only stimulate the growth of an economy but also enhance energy consumption (henceforth EC) by augmenting tourism activities like transportation and hotel stays (Dogan & Aslan, 2017; Koçak, Ulucak, & Ulucak, 2020). Tourism activities, particularly air transportation, have been linked to an increase in EC and, as a result, cause environmental pollution (Sobieralski, 2021). Thus, it is interesting to know how tourism leads to an increase in EC (Khanal, 2021). However, in existing research, the impact of tourism on EC is inconclusive (Petrović & Dimitrijević, 2020; Selvanathan, Jayasinghe, & Selvanathan, 2021).

The BRICS countries are considered to have exceptionally strong tourist industries. In addition, according to Future Markets Insight (Tradings, 2020 ), BRICS countries are progressively flourishing as they not only play a positive role in  the economic outlook (Azevedo, Sartori, & Campos, 2018; Baloch, Mahmood, & Zhang, 2019), but they also have more potential for tourism development and provide more options for tourist destinations (Tradings, 2020 ). Moreover, the BRICS economies are expected to account for 37.7 percent of global gross national product by 2030, which is higher than the 15% and 15.3% of the USA and Europe, respectively (Bank, 2017). As the growing economic prosperity of the BRICS countries steers tourism development (Aziz, Mihardjo, Sharif, & Jermsittiparsert, 2020), EC rises as a consequence (Tang, 2015; Tang, Shang, Shi, Liu, & Bi, 2014). The tourism sector was the core focus of the 2017 BRICS Xiamen Summit in China. These countries, which are also popular tourist destinations around the world, have robust growth rates as well (Rasool, Maqbool, & Tarique, 2021). Between 1990 and 2014, these nations increased their share of global GDP from 11% to approximately 30% (Mminele, 2016). Among the BRICS countries, China is ranked the most attractive destination (Whiting, 2018; WTTC, 2012).

In existing research, tourism has been found to have a negative impact on the environment in Greece (Ișik et al., 2020). Also, various nations have revealed both negative and positive tourism effects on carbon emissions (Dogru et al., 2020). Moreover, Turkey and China have practiced tourism-led growth, whereas Russia and Spain have experienced growth-led tourism (Işik, Doğan, & Ongan, 2017). Globalization and international trade have prompted many studies to explore the association between trade, energy, and emissions in various regions (Rahman & Miah, 2017), and EC and economic growth (Karanfil & Li, 2015; Shahbaz, Mallick, Mahalik, & Loganathan, 2015). The effects of energy and tourism on CO2 emissions have been explored in existing studies (Ișik et al., 2020). However, there are few studies relating to the effect of tourism on EC (Gia, 2021), and the literature has not covered this important relationship in the case of BRICS countries, which are the main destinations for tourists and consume greater energy for the management of tourist activities. The BRICS studies of Banday and Ismail (2017), Aziz et al. (2020), Zhang and Wang (2019), and Danish and Wang (2018) investigated the impact of tourism, GDP, gross fixed capital formation (GFCF), total labor force, renewable EC, total investment in tourism, and globalization on carbon emissions. Moreover, Kongbuamai, Bui, and Nimsai (2021) explored the real GDP PC, renewable EC (REC), nonrenewable EC (NREC), industry share (IS), and environmental policy stringency impact on the ecological footprint in BRICS, and Rasool et al. (2021) explored the financial development and tourism effects on the economic growth of BRICS economies. To our best knowledge, no study has investigated the effect of tourism on EC as a major contributor to the tourism industry.  Now the researchers are focusing on the BRICS nations because they have enormous potential to become global leaders, particularly in tourism. Tourism is a rising sector that deserves attention, and it contributes to the strength of the BRICS economies by providing a variety of opportunities (Datta, 2014). Our work adds to existing studies in two ways: First, following Gokmenoglu and Eren (2020) and Khanal et al. (2021),  we investigate the influence of tourism on EC in BRICS nations. Second, our study uses three proxies for energy consumption, including primary energy intensity (Energy intensity level of primary energy (MJ/$2011 PPP GDP), energy use (kg of oil equivalent per capita), and electricity consumption (kWh per capita), which are not currently used in studies on BRICS countries. The rest of this paper is organized as follows: The second section is devoted to a review of the literature. Section 3 discusses the data and methodology used to study the relationship between the EC and tourism in the BRICS countries. The results are discussed in Section 4, and the study conclusion is presented in Section 5.

2. LITERATURE REVIEW

The prevailing studies on energy economies focus on the association among tourism, energy, carbon emissions, and economic growth (Ali et al., 2020; Ben Jebli & Hadhri, 2018; Gökmenoğlu & Taspinar, 2016; Katircioglu, 2014; Katircioglu, Feridun, & Kilinc, 2014; YaPing Liu, Kumail, Wajahat, & Sadiq, 2019; Naradda Gamage, Hewa Kuruppuge, & Haq, 2017; Nepal, Al Irsyad, & Nepal, 2019; Selvanathan et al., 2021; Sghaier, Guizani, Ben Jabeur, & Nurunnabi, 2019; Zhang & Gao, 2016) . Based on a literature review, limited studies have been conducted on the nexus between energy and tourism in this research area (Amin, Kabir, & Khan, 2020; Gokmenoglu & Eren, 2020; Isik, Dogru, & Turk, 2018; Petrović & Dimitrijević, 2020; Tang, Tiwari, & Shahbaz, 2016) . For instance, in the existing literature, few studies have concentrated on the association between EC and tourism (Becken & Simmons, 2002; Becken, Simmons, & Frampton, 2003; Ceron & Dubois, 2003; Kelly & Williams, 2007; Kumar, 2005; Nepal, 2008; Tabatchnaia-Tamirisa, Loke, Leung, & Tucker, 1997; Warnken, Bradley, & Guilding, 2004) . Empirical work on tourism and EC is not as much as tourism-energy growth. Lai, To, Lo, Choy, and Lam (2011); Tiwari, Ozturk, and Aruna (2013); Katircioglu (2014); Katircioğlu (2014b); Katircioglu et al. (2014); and Yorucu and Mehmet (2015) are the studies that empirically analyzed the link between the EC and tourism. Lai et al. (2011) investigated the correlation among tourism, electricity consumption, and related controls in China. The study indicated that tourism does not play any significant role in electricity consumption, and thus eliminated tourism from the model. Tiwari et al. (2013) used a vector autoregressive (VAR) model to evaluate the connection between tourism, CO2 emissions, and EC in Organization for Economic Co-operation and Development (OECD) nations. Contrary to the study of Lai et al. (2011), this study found a positive effect of tourism on OECD energy consumption. 

The study of Khanal et al. (2021) for Australia explored the long-run cointegration relationship between tourism and EC. The study revealed a positive effect of tourism on EC. Moreover,  Lee's (2013) study examined the impact of tourists and industrial production on EC in Singapore, using electricity consumption as a proxy for EC. The outcome revealed that “total international inbound tourists” and industrial production have positive impacts on EC. Muhammad, Khan, Razzaq, and Karim (2021) discovered the influence of tourism and governance on CO2 in their first model and the impact of tourism and governance on EC in their second model. In the case of the CO2 model, the study observed that governance negatively affected CO2 emissions while tourism positively affected CO2 emissions. However, in the energy model, governance showed a positive association and tourism a negative correlation with energy use in a panel of Muslim countries. Similarly, in India, Tang et al. (2016) investigated the dynamic causal and inter-relationship between economic growth, EC, and tourism utilizing yearly data from 1971-2012. The study exhibited that economic growth, EC, and tourism were cointegrated in India. Tourism and economic growth strongly influenced EC in the long run. The study also revealed that economic growth and tourism are interrelated, but the casual effect of tourism on economic growth was stronger as compared to the other way around in the long and short run. Thus, the tourism-led growth hypothesis is valid, while the energy-led growth hypothesis is invalid for India. Zhang and Zhang (2021) studied the causal relationship between economic growth, tourism, carbon emission, and tourism for the Chinese provinces and revealed a long-run association among the concerned variables, a unidirectional causality in the short-run running from EC to the concerned variables, and a bidirectional causality among CO2 and GDP, tourism, and GDP and  tourism in the long-run. Further, Pablo-Romero, Sánchez-Braza, and Sánchez-Rivas (2017) also examined the relationship between hotel and restaurant (H&R) tourism, income, electricity consumption, and temperature for the EU countries. The researchers concluded that tourism, income, and temperature played a significant role in increasing electricity consumption. Furthermore, Yorucu and Mehmet (2015) revealed that GDP growth and tourist arrivals cause a 0.74% and 0.045% increase in electricity consumption, respectively, in Turkey.

Utilizing data from India from 2006 to 2014, Akkinapalli (2018) investigated the impact of international and domestic tourists, steel, and population on EC. The study found a direct association among the related variables, implying that an increase in tourism causes a deviation from the goal of sustainable tourism. Katircioglu (2013) showed that international tourism has a significant and positive long term impact on the EC in Northern Cyprus. Katircioglu et al. (2014) and Katircioğlu (2014b) also argued that tourism has increased EC and exacerbated environmental quality. According to Wu and Shi (2011), China’s tourism sector consumed 0.51 percent of its energy and triggered 0.86 percent of  its CO2 emissions. Katircioglu, Gokmenoglu, and Eren (2019) confirmed the long-term positive influence of tourism growth on EC for top tourist nations. The study also discovered that tourism acts as a mediator between changes in exchange rates and an increase in EC, as changes in exchange rates affect both tourism and energy use.

3. DATA AND METHOD        

3.1. Data

This study examines the impact of international tourist arrivals on EC in the BRICS countries. Our study used panel data from 1995 to 2014. Table 1 presents the variables code, description, and data sources. The variables were selected based on the study of Khanal et al. (2021).

Table 1. Variables description.
Code unit                                 Sources Code Description
Dependent
Energy intensity Energy use Electricity Consumption Energy intensity level of primary energy Energy use Electricity consumption (Log) (MJ/$2011 PPP GDP)   (kg of oil equivalent per capita) (kwh per capita)    ENIN   ENUS LELC WDI   WDI WDI
Independent
Tourism International tourists, number of arrivals (Log) LTOUR WDI
Controls
Economic growth Gross domestic product (Log) (constant 2015 US$) LGDP WDI
Investments Gross fixed capital formation (Log) (constant 2015 US$) LGFCF WDI
Population Population (Log) Total LTP WDI
Financial development Domestic credit to the private sector (Log) (GDP %) LFD WDI

Note:

Energy intensity (ENIN), energy use (ENUS), electricity consumption (LELE) are the measures of energy consumption. WDI stands for world development indicators of the worldbank.

3.2. Methodology        

This paper investigates the association between the EC and international tourist arrivals in BRICS countries. EC is the dependent variable, while tourism is the core independent variable of our study. The empirical analysis is divided into three models with different proxies of EC.

Following Pablo-Romero, Sánchez-Braza, and Sánchez-Rivas (2021); Isaeva, Salahodjaev, Khachaturov, and Tosheva (2022); Katircioglu (2013); and Yorucu and Mehmet (2015), we respectively used energy intensity, energy use, and electricity consumption in the first, second, and third models, to measure EC. Following Gokmenoglu and Eren (2020) and Khanal et al. (2021), our study estimated the following panel model by using the FGLS technique. Our core model is shown in Equation 1.

In our core model, Energyit is the energy consumed, proxy by energy intensity, energy use, and electricity consumption. International tourist arrivals are the core independent variable. The vector X indicates the control variables for robustness checks in our model. The model for robustness checks in our study is shown in Equation 2:

Where energy denotes energy intensity (ENIN), energy use (ENUS), and the log of electricity consumption (LELC). LTour is the log of the number of international tourist arrivals. LFD is the log of financial development (% of GDP), LTPOP is the log of the total population, LGFCF is the log of gross fixed capital formation, and LGDP is the log of gross domestic product, which are the control variables for robustness checks. The subscript i indicates the country (i.e., BRICS), and the subscript t indicates the period. ε is the error term.

FGLS is used with the help of panel diagnostics to investigate the link between Energy and TOUR, as N=5 and T= 20. In the case of T > N, FGLS is a suitable technique in the presence of heteroscedasticity, cross-sectional dependence, and serial correlation, as proposed by Parks-Kmenta (Al-Malki, Hassan, & Ul-Haq, 2022; Shi, Visas, Ul-Haq, Abbas, & Khanum, 2022; Ul-Haq, Visas, Umair, Hussain, & Khanum, 2023; Ul-Haq, Wajid, Visas, Cheema, & Abbas, 2022) .

4. RESULTS

4.1. Diagnostics Tests

As shown in Tables 2 and 3, the study performed a diagnostic test to ascertain the reliability of the estimates. The diagnostic tests listed in Table 3.  The Modified Wald test indicated the issue of heteroscedasticity in the dataset. The Wooldridge test reveals the presence of a serial correlation, suggesting that the observations were not independent of one another.

Moreover, the Breusch Pagan Lagrange multiplier (henceforth BPLM) test revealed the presence of cross-sectional dependence (CSD), as shown in Table 3.

Based on our panel diagnostic tests, we used the FGLS and PCSE because when T = 20 and  N = 5, the FGLS is a superior choice (by reason T is greater than N) as suggested by the Parks-Kmenta method for the empirical analysis (Hoechle, 2007; Ul-Haq, Ashraf, Cheema, Hye, & Visas, 2023; Ul-Haq, Khanum, & Raza Cheema, 2020) .

Table 2. Serial correlation and heteroscedasticity panel diagnostic tests.
Test         Issues     (1)    (2)     (3)
Modified Wald (χ2) Heteroscedasticity 862.78*** 295.91*** 657.84***
Wooldridge test Serial correlation 35.882*** 17.366** 26.974***

Note:

Test statistics are shown in model (1-3) with energy intensity, energy use, and electricity consumption respectively. ‘***’ & ‘**’ shows the level of significance at 1% and 5% respectively.


Table 3. Breusch pagan LM test for cross-sectional dependence.
Unit 
(1)
(2)
(3)
CD-test stat.
51.173***
72.652***
31.661***
P-values
0.000
0.000
0.000

Note:

Test statistics are shown in model (1-3) with energy intensity, energy use, and electricity consumption respectively. ‘***’ shows the level of significance at 1%

4.2. Descriptive Statistics       

Descriptive statistics of the study are presented in Table 4, where statistics show that variables show a normal distribution. Moreover, the variables also indicated minimal deviation from the mean.

Table 4. Descriptive statistics.
Variable
N
Average
S.D
Mini.
Maxi.
ENIN
100
8.202
3.017
3.76
14.393
ENUS
100
2047.845
1461.042
385.09
5167.01
LELC
100
7.664
0.914
5.882
8.797
LTOUR
100
16.331
1.250
14.504
18.723
LFD
100
4.019
0.737
2.305
5.075
LTPOP
100
19.465
1.276
17.539
21.033
LGFCF
100
26.144
1.253
23.921
29.751
LGDP
100
27.713
0.990
25.896
29.966

4.3. Energy Consumption and Tourism: Empirical Analysis

We examined the nexus between EC and tourism in BRICS countries using the FGLS and PCSE techniques. The results are presented in Table 5. In our empirical analysis, we used energy intensity in models 1 and 4, energy use in models 2 and 5, and the log of electricity consumption in models 3 and 6.

Table 5. Energy consumption and tourism in BRICS countries.
Variables
FGLS
PCSE
(1)
(2)
(3)
(4)
(5)
(6)
LTOUR
1.151***
(0.054)
348.9***
(10.99)
0.229***
(0.005)
1.188***
(0.187)
360.5***
(106.5)
0.233***
(0.071)
Constant
-10.66***
(0.831)
-3,660***
(171.4)
3.918***
(0.092)
-11.20***
(3.067)
-3.839**
(1.681)
3.853***
(1.173)
Wald stat.
443.57
1008.13
1476.50
40.42
11.45
10.64
P-values
0.000
0.000
0.000
0.000
0.000
0.001
Obs.
100
100
100
100
100
100

Note:

Energy consumption is the dependent variable in all models. Model (1&4) with energy intensity, (2&5) with energy use, and (3&6) with electricity consumption. Parentheses present S.E. ***, ** indicate p<0.01, p<0.05.

Table 5 shows the relationship between EC and tourism in BRICS economies. Energy consumption and tourism are associated. The FGLS results for models 1-3 (i.e., ENIN, ENUS, & LELEC) reveal that tourism is positively and significantly related to EC for BRICS. A 1% increase in the number of international tourists increases EC by 1.151%, 348.9%, and 0.229%, respectively. Furthermore, the results of PCSE in models 4-6 also revealed a positive impact of tourism on all the measures of EC. The results indicate that an increase in the number of international tourist arrivals increases EC in BRICS countries. Our findings are the same using both FGLS and PCSE methods. Moreover, our results are consistent with the existing studies of Yorucu and Mehmet (2015), Lee (2013), Katircioglu (2014), Katircioglu et al. (2014), Isaeva et al. (2022), and Katircioğlu (2014b), and contrast with the studies of Muhammad et al. (2021) and Petrović and Dimitrijević (2020). The positive association between EC and tourism is understandable because the augmentation of tourist arrivals enhances economic activities as well as the production of goods and services, leading to an increase in EC. For instance, Tang et al. (2016) revealed that tourism-related activities, facilities, and infrastructure require more energy, like electricity and oil, for charming operations. Also, the studies of Nepal et al. (2019) and Liu, Feng, and Yang (2011) showed that transportation is a major contributor to EC. Subsequently, an increase in tourist arrivals enhances energy demand. Tourism in remote areas, like hiking activities, may require less energy than electricity, which is required for tourists in a built-up environment. For instance, in the UAE, tourists may require greater energy than similar tourists visiting Mount Kilimanjaro (Khanal, 2021).

4.4. Robustness Checks

For robustness checks of our core findings, we include various control variables that influence EC, such as financial development, population, GFCF, and GDP, in our main model based on prevailing studies (Khanal, 2021). We used the same proxies for EC that is, energy intensity, energy use, and the log of electricity consumption, in models 1&4, 2&5, and 3&6 respectively. The results of our robustness checks are presented in Table 6.

Table 6. Energy consumption and tourism in BRICS countries (Robustness checks).
Variables
FGLS
PCSE
(1)
(2)
(3)
(4)
(5)
(6)
LTOUR
3.288***
(0.094)
1,053***
(41.90)
0.414***
(0.015)
3.255***
(0.123)
1,094***
(75.80)
0.425***
(0.015)
LFD
-1.250***
(0.099)
-1,007***
(92.28)
-0.270***
(0.014)
-1.384***
(0.173)
-1,235***
(112.6)
-0.245***
(0.016)
LTPOP
1.097***
(0.079)
-806.3***
(53.67)
-0.871***
(0.007)
1.100***
(0.118)
-896.3***
(54.75)
-0.867***
(0.013)
LGFCF
-0.434*
(0.224)
1,324***
(81.13)
0.576***
(0.025)
-0.475
(0.383)
1,361***
(128.2)
0.587***
(0.029)
LGDP
-3.822***
(0.432)
-1,977***
(174.2)
-0.371***
(0.058)
-3.759***
(0.502)
-1,977***
(210.6)
-0.415***
(0.057)
Constant
55.37***
(5.202)
24,702***
(1,557)
14.18***
(0.659)
55.79***
(4.555)
25,784***
(1,966)
14.74***
(0.576)
Wald stat.
1831.30
6305.61
26302.34
826.47
1015.80
12730.30
P-values
0.000
0.000
0.000
0.000
0.000
0.000
Obs.
100
100
100
100
100
100

Note:

Energy consumption is the dependent variable in all models. Model (1&4) with energy intensity, (2&5) with energy use, and (3&6) with electricity consumption. Parentheses present S.E. ***, * indicate p<0.01, p<0.1.

Table 6 indicates that our findings are robust and statistically significant after including the various controls. The inclusion of financial development and GDP as controls shows that financial development and GDP are negatively and significantly related to EC in all models. When energy intensity is used as a proxy for EC (columns 1&4), total population has a positive impact on energy use (León, Arana, & Hernández Alemán, 2014). Total population is negatively related to EC when energy use or the log of electricity consumption is used as a proxy for EC (columns 2-3 and 5-6). The study by Liu et al. (2011) showed that population has a negative influence on EC. Their findings indicated that a 1% increase in population would decrease energy use by 0.211% in China. Also, the author revealed that population density decreases energy use by 0.065%, 0.239%, and 0.211% in China’s eastern, central, and western regions. Azam, Khan, Zaman, and Ahmad (2015) found a negative coefficient of population growth in Indonesia and Thailand. The coefficient on total population is negative, and this is logical given that as total population increases (other things remain the same), EC per capita decreases. These empirical results are in line with the existing studies on Indonesia and China (Azam et al., 2015; Yansui Liu, Zhou, & Wu, 2015). Moreover, GFCF is inversely associated with EC when energy intensity measures are used for EC (columns 1&4) and positively associated with energy when energy use is the proxy for electricity consumption (columns 2-3 and 5-6) in the above table. The study of Omri and Kahouli (2014) on the association between capital formation, EC, and financial development found a positive and significant impact of capital formation and financial development on EC. Furthermore, a positive association among the CAP, GDP, and FD was also found by the studies of Gia (2021), Khan, Hou, and Le (2021), and Soytas and Sari (2009). GDP growth needs greater EC, which leads to climate pollution (Khanal, 2021), while FD establishes new production lines and industries, which also affect pollution and emission.  

To sum up, our study finds that an increase in tourism increases EC in BRICS nations. EC and tourism are positively and significantly associated. Moreover, our findings are robust to various controls and statistically significant regardless of the measure of EC used. As no previous research has used the BRICS countries in this context, this is the first study to show that tourism has an impact on EC in the BRICS countries.

5. CONCLUSION

This study investigated the impact of tourism on EC in BRICS countries using panel data from 1995 to 2014.  The study used FGLS and PCSE methods to determine the association between tourism and EC. To measure EC, our study used three proxies: energy intensity, energy use, and electricity consumption. The findings reveal that EC and tourism are associated in the BRICS. The tourism coefficient indicated a positive relationship with the EC. Tourism enhancement leads to an increase in EC in the BRICS countries. Further, our results are robust to the inclusion of various controls such as financial development, population, GDP, and GFCF as major determinants of EC. Using both approaches (i.e., FGLS & PCSE), the results show that the coefficients of financial development and GDP are negative, implying that FD and GDP reduce EC.     

When energy intensity is used as a proxy for EC (columns 1&4), total population has a positive impact on energy use (León et al., 2014). It is negatively related to EC when energy use or the log of electricity consumption is used as a proxy for EC (columns 2-3 & 5-6). Our results are insensitive to various controls and statistically significant.

This study's findings have a wide range of policy consequences. Greater energy use, in particular, is strongly linked to carbon emissions and climate change, necessitating appropriate strategies to reduce tourism-related EC in the BRICS. One of the possible requirements may be that governments provide incentives to key tourist sector stakeholders to use cleaner energy, hybrid energies, and low-carbon natural transportation in order to achieve the targeted level of carbon emission reduction. Hotels, as well as other associated establishments, may be encouraged to use renewable energy sources. The government could provide tax credits or low-cost loans to encourage the purchase of ecologically friendly technologies. More research may be conducted to determine the effectiveness of policies aimed at transitioning to renewable energy sources for the BRICS tourism industry as well as the cost-effectiveness of launching green energy for the tourism industry to reduce EC in the BRICS. Policymakers, tourist-related industries, and government officials will have to conduct more studies to examine the impact of energy and tourism associations in the context of COVID-19 scenarios involving travel, air transport, and the tourism industry. This investigation of disruption by COVID would help to complete the study and might be extended in order to resolve the economic crisis.

Funding:   This study received no specific financial support.
Institutional Review Board Statement: Not applicable. 
Data Availability Statement: The corresponding author can provide the supporting data of this study upon a reasonable request.
Competing Interests: The authors declare that they have no competing interests.
Authors’ Contributions: The conceptualization, H.V., R.R., and J.H.; data collection, J.H., S.K., and A.R.C.; arrangement and transformation into Stata form, J.H. and A.R.C.; finalization of methodology for analysis, H.V., J.H., and Q.M.A.H.; the draft, H.V., R.R., A.R.C., and S.K.; draft improvement and methodology, J.H. and Q.M.A.H.; review and editing, H.V., R.R. and A.R.C.; supervision of whole study, J.H. All authors have read and agreed to the published version of the manuscript.

REFERENCES

Akkinapalli, S. (2018). Impact of tourism on energy consumption in India. International Journal for Advance Research and Development, 3(4), 37-46.

Al-Malki, A. M., Hassan, M.-U., & Ul-Haq, J. (2022). Nexus between remittance outflows and economic growth in GCC countries: The mediating role of financial development. Applied Economics, 1-13. https://doi.org/10.1080/00036846.2022.2139812

Ali, W., Sadiq, F., Kumail, T., Li, H., Zahid, M., & Sohag, K. (2020). A cointegration analysis of structural change, international tourism and energy consumption on CO2 emission in Pakistan. Current Issues in Tourism, 23(23), 3001-3015. https://doi.org/10.1080/13683500.2020.1804338

Amin, S. B., Kabir, F. A., & Khan, F. (2020). Tourism and energy nexus in selected South Asian countries: A panel study. Current Issues in Tourism, 23(16), 1963-1967. https://doi.org/10.1080/13683500.2019.1638354

Azam, M., Khan, A. Q., Zaman, K., & Ahmad, M. (2015). Factors determining energy consumption: Evidence from Indonesia, Malaysia and Thailand. Renewable and Sustainable Energy Reviews, 42, 1123-1131. https://doi.org/10.1016/j.rser.2014.10.061

Azevedo, V. G., Sartori, S., & Campos, L. M. (2018). CO2 emissions: A quantitative analysis among the BRICS nations. Renewable and Sustainable Energy Reviews, 81, 107-115. https://doi.org/10.1016/j.rser.2017.07.027

Aziz, N., Mihardjo, L. W., Sharif, A., & Jermsittiparsert, K. (2020). The role of tourism and renewable energy in testing the environmental Kuznets curve in the BRICS countries: Fresh evidence from methods of moments quantile regression. Environmental Science and Pollution Research, 27, 39427-39441. https://doi.org/10.1007/s11356-020-10011-y

Baloch, M. A., Mahmood, N., & Zhang, J. W. (2019). Effect of natural resources, renewable energy and economic development on CO2 emissions in BRICS countries. Science of the Total Environment, 678, 632-638. https://doi.org/10.1016/j.scitotenv.2019.05.028

Banday, U. J., & Ismail, S. (2017). Does tourism development lead positive or negative impact on economic growth and environment in BRICS countries? A panel data analysis. Economics Bulletin, 37(1), 553-567.

Bank, W. (2017). Zimbabwe economic update: The State in the economy.Retrieved from https://www.worldbank.org/en/country/zimbabwe/overview

Becken, S., & Simmons, D. G. (2002). Understanding energy consumption patterns of tourist attractions and activities in New Zealand. Tourism Management, 23(4), 343-354. https://doi.org/10.1016/s0261-5177(01)00091-7

Becken, S., Simmons, D. G., & Frampton, C. (2003). Energy use associated with different travel choices. Tourism Management, 24(3), 267-277. https://doi.org/10.1016/s0261-5177(02)00066-3

Ben Jebli, M., & Hadhri, W. (2018). The dynamic causal links between CO2 emissions from transport, real GDP, energy use and international tourism. International Journal of Sustainable Development & World Ecology, 25(6), 568-577. https://doi.org/10.1080/13504509.2018.1434572

Ceron, J., & Dubois, G. (2003). Changes in leisure/tourism mobility patterns facing the stake of global warming: The case of France. Presentation given a Global Change and Human Mobility. In (pp. 3-5). Palma de Mallorca, Spain: International Geographical Union Commission.

Danish, & Wang, Z. (2018). Dynamic relationship between tourism, economic growth, and environmental quality. Journal of Sustainable Tourism, 26(11), 1928-1943. https://doi.org/10.1080/09669582.2018.1526293

Datta, B. (2014). A critical analysis of the tourism policies of the BRICS nations–a new approach to understand the importance of tourism. Tourism, 3(1), 209-212.

Davos. (2022). Towards resilience and sustainability: Travel and tourism development recovery. Retrieved from https://www.weforum.org/agenda/2022/05/travel-tourism-index-resilience-sustainability/

Dogan, E., & Aslan, A. (2017). Exploring the relationship among CO2 emissions, real GDP, energy consumption and tourism in the EU and candidate countries: Evidence from panel models robust to heterogeneity and cross-sectional dependence. Renewable and Sustainable Energy Reviews, 77, 239-245. https://doi.org/10.1016/j.rser.2017.03.111

Dogru, T., Bulut, U., Kocak, E., Isik, C., Suess, C., & Sirakaya-Turk, E. (2020). The nexus between tourism, economic growth, renewable energy consumption, and carbon dioxide emissions: Contemporary evidence from OECD countries. Environmental Science and Pollution Research, 27(32), 40930-40948. https://doi.org/10.1007/s11356-020-10110-w

Gia, B. H. (2021). Some solutions for sustainable agricultural tourism development in the Mekong Delta in Vietnam. Paper presented at the The E3S Web of Conferences.

Gökmenoğlu, K., & Taspinar, N. (2016). The relationship between CO2 emissions, energy consumption, economic growth and FDI: The case of Turkey. The Journal of International Trade & Economic Development, 25(5), 706-723. https://doi.org/10.1080/09638199.2015.1119876

Gokmenoglu, K. K., & Eren, B. M. (2020). The role of international tourism on energy consumption: Empirical evidence from Turkey. Current Issues in Tourism, 23(9), 1059-1065. https://doi.org/10.1080/13683500.2019.1574723

Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. The Stata Journal, 7(3), 281-312. https://doi.org/10.1177/1536867x0700700301

Isaeva, A., Salahodjaev, R., Khachaturov, A., & Tosheva, S. (2022). The impact of tourism and financial development on energy consumption and carbon dioxide emission: Evidence from post-communist countries. Journal of the Knowledge Economy, 13(1), 773-786. https://doi.org/10.1007/s13132-021-00732-x

Ișik, C., Ahmad, M., Pata, U. K., Ongan, S., Radulescu, M., Adedoyin, F. F., . . . Ongan, A. (2020). An evaluation of the tourism-induced environmental Kuznets curve (T-EKC) hypothesis: Evidence from G7 Countries. Sustainability, 12(21), 9150. https://doi.org/10.3390/su12219150

Işik, C., Doğan, E., & Ongan, S. (2017). Analyzing the tourism–energy–growth nexus for the top 10 most-visited countries. Economies, 5(4), 1-13. https://doi.org/10.3390/economies5040040

Isik, C., Dogru, T., & Turk, E. S. (2018). A nexus of linear and non‐linear relationships between tourism demand, renewable energy consumption, and economic growth: Theory and evidence. International Journal of Tourism Research, 20(1), 38-49. https://doi.org/10.1002/jtr.2151

Karanfil, F., & Li, Y. (2015). Electricity consumption and economic growth: Exploring panel-specific differences. Energy Policy, 82, 264-277. https://doi.org/10.1016/j.enpol.2014.12.001

Katircioglu, S., Gokmenoglu, K. K., & Eren, B. M. (2019). The role of tourism growth in generating additional energy consumption: Empirical evidence from major tourist destinations. Environmental and Ecological Statistics, 26(4), 303-323. https://doi.org/10.1007/s10651-019-00429-0

Katircioglu, S. T. (2013). Estimating the impact of tourism development on energy consumption: The case of Northern Cyprus/Turizm predicting the effect of its development on energy consumption: North cyprus example. Journal of Cyprus Studies, 17(41), 1-12.

Katircioglu, S. T. (2014). International tourism, energy consumption, and environmental pollution: The case of Turkey. Renewable and Sustainable Energy Reviews, 36, 180-187. https://doi.org/10.1016/j.rser.2014.04.058

Katircioğlu, S. T. (2014b). Testing the tourism-induced EKC hypothesis: The case of Singapore. Economic Modelling, 41, 383-391. https://doi.org/10.1016/j.econmod.2014.05.028

Katircioglu, S. T., Feridun, M., & Kilinc, C. (2014). Estimating tourism-induced energy consumption and CO2 emissions: The case of Cyprus. Renewable and Sustainable Energy Reviews, 29, 634-640. https://doi.org/10.1016/j.rser.2013.09.004

Kelly, J., & Williams, P. W. (2007). Modelling tourism destination energy consumption and greenhouse gas emissions: Whistler, British Columbia, Canada. Journal of Sustainable Tourism, 15(1), 67-90. https://doi.org/10.2167/jost609.0

Khan, I., Hou, F., & Le, H. P. (2021). The impact of natural resources, energy consumption, and population growth on environmental quality: Fresh evidence from the United States of America. Science of the Total Environment, 754, 142222. https://doi.org/10.1016/j.scitotenv.2020.142222

Khanal, A. (2021). The role of ICT and energy consumption on carbon emissions: an Australian evidence using cointegration test and ARDL long-run and short-run methodology. International Journal of Energy Economics and Policy, 11(5), 441-449.https://doi.org/10.32479/ijeep.11419

Khanal, A., Rahman, M. M., Khanam, R., & Velayutham, E. (2021). Are tourism and energy consumption linked? Evidence from Australia. Sustainability, 13(19), 10800. https://doi.org/10.3390/su131910800

Koçak, E., Ulucak, R., & Ulucak, Z. Ş. (2020). The impact of tourism developments on CO2 emissions: An advanced panel data estimation. Tourism Management Perspectives, 33, 100611. https://doi.org/10.1016/j.tmp.2019.100611

Kongbuamai, N., Bui, Q., & Nimsai, S. (2021). The effects of renewable and nonrenewable energy consumption on the ecological footprint: The role of environmental policy in BRICS countries. Environmental Science and Pollution Research, 28(22), 27885-27899. https://doi.org/10.1007/s11356-021-12551-3

Kumar, S. (2005). Resource use and waste management in Vietnam hotel industry. Journal of Cleaner Production, 13(2), 109-116. https://doi.org/10.1016/j.jclepro.2003.12.014

Kyara, V. C., Rahman, M. M., & Khanam, R. (2021). Tourism expansion and economic growth in Tanzania: A causality analysis. Heliyon, 7(5), e06966. https://doi.org/10.1016/j.heliyon.2021.e06966

Lai, T., To, W. M., Lo, W., Choy, Y. S., & Lam, K. (2011). The causal relationship between electricity consumption and economic growth in a Gaming and Tourism Center: The case of Macao SAR, the People’s Republic of China. Energy, 36(2), 1134-1142. https://doi.org/10.1016/j.energy.2010.11.036

Lee, C. G. (2013). Electricity consumption and international tourism: The case of Singapore. Anatolia, 24(1), 91-94. https://doi.org/10.1080/13032917.2013.777673

León, C. J., Arana, J. E., & Hernández Alemán, A. (2014). CO2 emissions and tourism in developed and less developed countries. Applied Economics Letters, 21(16), 1169-1173. https://doi.org/10.1080/13504851.2014.916376

Liu, J., Feng, T., & Yang, X. (2011). The energy requirements and carbon dioxide emissions of tourism industry of Western China: A case of Chengdu city. Renewable and Sustainable Energy Reviews, 15(6), 2887-2894. https://doi.org/10.1016/j.rser.2011.02.029

Liu, Y., Kumail, T., Wajahat, A., & Sadiq, F. (2019). The dynamic relationship between CO2 emission, international tourism and energy consumption in Pakistan: A cointegration approach. Tourism Review, 74(4), 761-779. https://doi.org/10.1108/tr-01-2019-0006

Liu, Y., Zhou, Y., & Wu, W. (2015). Assessing the impact of population, income and technology on energy consumption and industrial pollutant emissions in China. Applied Energy, 155, 904-917. https://doi.org/10.1016/j.apenergy.2015.06.051

Mminele, D. (2016). The role of BRICS in the global economy (Vol. 7). Germany: South African Reserve Bank, at the Bundesbank Regional Office in North Rhine-Westphalia, Düsseldorf.

Muhammad, F., Khan, A., Razzaq, N., & Karim, R. (2021). Influence of tourism, governance, and foreign direct investment on energy consumption and CO 2 emissions: A panel analysis of Muslim countries. Environmental Science and Pollution Research, 28, 416-431. https://doi.org/10.1007/s11356-020-10502-y

Naradda Gamage, S. K., Hewa Kuruppuge, R., & Haq, I. u. (2017). Energy consumption, tourism development, and environmental degradation in Sri Lanka. Energy Sources, Part B: Economics, Planning, and Policy, 12(10), 910-916. https://doi.org/10.1080/15567249.2017.1324533

Nepal, R., Al Irsyad, M. I., & Nepal, S. K. (2019). Tourist arrivals, energy consumption and pollutant emissions in a developing economy–implications for sustainable tourism. Tourism Management, 72, 145-154. https://doi.org/10.1016/j.tourman.2018.08.025

Nepal, S. K. (2008). Tourism-induced rural energy consumption in the Annapurna region of Nepal. Tourism Management, 29(1), 89-100. https://doi.org/10.1016/j.tourman.2007.03.024

Omri, A., & Kahouli, B. (2014). Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models. Energy Policy, 67, 913-922. https://doi.org/10.1016/j.enpol.2013.11.067

Pablo-Romero, M. d. P., Sánchez-Braza, A., & Sánchez-Rivas, J. (2021). Tourism and electricity consumption in 9 European countries: a decomposition analysis approach. Current Issues in Tourism, 24(1), 82-97. https://doi.org/10.1080/13683500.2019.1684881

Pablo-Romero, M. P., Sánchez-Braza, A., & Sánchez-Rivas, J. (2017). Relationships between hotel and restaurant electricity consumption and tourism in 11 European Union countries. Sustainability, 9(11), 2109. https://doi.org/10.3390/su9112109

Petrović, J., & Dimitrijević, Ž. (2020). The impact of international tourism on energy consumption: A panel study of the western balkans and the European Union. Facta Universitatis, Series: Law and Politics, 055-067. https://doi.org/10.22190/fulp2002055p

Rahman, S. M., & Miah, M. D. (2017). The impact of sources of energy production on globalization: Evidence from panel data analysis. Renewable and Sustainable Energy Reviews, 74, 110-115. https://doi.org/10.1016/j.rser.2017.02.037

Rasool, H., Maqbool, S., & Tarique, M. (2021). The relationship between tourism and economic growth among BRICS countries: A panel cointegration analysis. Future Business Journal, 7(1), 1-11. https://doi.org/10.1186/s43093-020-00048-3

Rauf, A., Ozturk, I., Ahmad, F., Shehzad, K., Chandiao, A. A., Irfan, M., . . . Jinkai, L. (2021). Do tourism development, energy consumption and transportation demolish sustainable environments? evidence from Chinese Provinces. Sustainability, 13(22), 12361. https://doi.org/10.3390/su132212361

Selvanathan, E. A., Jayasinghe, M., & Selvanathan, S. (2021). Dynamic modelling of inter‐relationship between tourism, energy consumption, CO2 emissions and economic growth in South Asia. International Journal of Tourism Research, 23(4), 597-610. https://doi.org/10.1002/jtr.2429

Sghaier, A., Guizani, A., Ben Jabeur, S., & Nurunnabi, M. (2019). Tourism development, energy consumption and environmental quality in Tunisia, Egypt and Morocco: A trivariate analysis. Geo Journal, 84(3), 593-609. https://doi.org/10.1007/s10708-018-9878-z

Shahbaz, M., Mallick, H., Mahalik, M. K., & Loganathan, N. (2015). Does globalization impede environmental quality in India? Ecological Indicators, 52, 379-393. https://doi.org/10.1016/j.ecolind.2014.12.025

Shi, J., Visas, H., Ul-Haq, J., Abbas, S., & Khanum, S. (2022). Investigating the impact of export product diversification on environmental degradation: Evidence from Chinese Provinces. Environment, Development and Sustainability, 1-32. https://doi.org/10.1007/s10668-022-02536-8

Sobieralski, J. B. (2021). Energy consumption and emissions dynamics of US domestic intercity air travel. Transportation Research Part D: Transport and Environment, 99, 102993. https://doi.org/10.1016/j.trd.2021.102993

Soytas, U., & Sari, R. (2009). Energy consumption, economic growth, and carbon emissions: Challenges faced by an EU candidate member. Ecological Economics, 68(6), 1667-1675. https://doi.org/10.1016/j.ecolecon.2007.06.014

Stojanovska-Stefanova, A., Magdinceva Sopova, M., & Aleksoski, O. (2021). Policies for recovery of the travel and tourism from Covid-19 pandemic. Sociobrains, International Scientific Refereed Online Journal with Impact Factor, 8(83), 57-73.

Tabatchnaia-Tamirisa, N., Loke, M. K., Leung, P., & Tucker, K. A. (1997). Energy and tourism in Hawaii. Annals of Tourism Research, 24(2), 390-401.

Tang, C. F., Tiwari, A. K., & Shahbaz, M. (2016). Dynamic inter-relationships among tourism, economic growth and energy consumption in India. Geosystem Engineering, 19(4), 158-169. https://doi.org/10.1080/12269328.2016.1162113

Tang, Z. (2015). An integrated approach to evaluating the coupling coordination between tourism and the environment. Tourism Management, 46, 11-19. https://doi.org/10.1016/j.tourman.2014.06.001

Tang, Z., Shang, J., Shi, C., Liu, Z., & Bi, K. (2014). Decoupling indicators of CO2 emissions from the tourism industry in China: 1990–2012. Ecological indicators, 46, 390-397. https://doi.org/10.1016/j.ecolind.2014.06.041

Tiwari, A. K., Ozturk, I., & Aruna, M. (2013). Tourism, energy consumption and climate change in OECD countries. International Journal of Energy Economics and Policy, 3(3), 247-261.

Tradings, D. (2020). Futures market insights for 2020 that you should know now.Retrieved from https://www.danielstrading.com/coronavirus

Ul-Haq, J., Ashraf, I., Cheema, A. R., Hye, Q. M. A., & Visas, H. (2023). The relationship between trade liberalization and gender disparity in education: Evidence from Pakistan. Nurture, 17(3), 180-193. https://doi.org/10.55951/nurture.v17i3.291

Ul-Haq, J., Khanum, S., & Raza Cheema, A. (2020). The impact of trade liberalization on child labor in Pakistan. International Review of Applied Economics, 34(6), 769-784. https://doi.org/10.1080/02692171.2020.1782853

Ul-Haq, J., Visas, H., Umair, M., Hussain, Z., & Khanum, S. (2023). Does economic fitness matter in carbon emissions mitigation in BRICS countries? Environmental Science and Pollution Research, 30(19), 55112-55131. https://doi.org/10.1007/s11356-023-26162-7

Ul-Haq, J., Wajid, F., Visas, H., Cheema, A. R., & Abbas, S. (2022). The nexus between trade liberalization and poverty: A disaggregated analysis. Asian Economic and Financial Review, 12(4), 279-295.

UNWTO. (2022). Tourism enjoys strong start to 2022 while facing new uncertainties. Retrieved from https://www.unwto.org/news/tourism-enjoys-strong-start-to-2022-while-facing-new-uncertainties

Usman, M., Anwar, S., Yaseen, M. R., Makhdum, M. S. A., Kousar, R., & Jahanger, A. (2022). Unveiling the dynamic relationship between agriculture value addition, energy utilization, tourism and environmental degradation in South Asia. Journal of Public Affairs, 22(4), e2712. https://doi.org/10.1002/pa.2712

Warnken, J., Bradley, M., & Guilding, C. (2004). Exploring methods and practicalities of conducting sector-wide energy consumption accounting in the tourist accommodation industry. Ecological Economics, 48(1), 125-141. https://doi.org/10.1016/j.ecolecon.2003.08.007

WEF. (2022). Travel & tourism development index 2021 rebuilding for a sustainable and resilient future. Retrieved from https://www3.weforum.org/docs/WEF_Travel_Tourism_Development_2021.pdf

Whiting, K. (2018). Why China will soon be the world’s top destination for tourists j World Economic Forum. Paper presented at the The World Economic Forum.

WTTC. (2012). World travel & tourism economic impact. London: World Travel & Tourism Council.

Wu, P., & Shi, P. (2011). An estimation of energy consumption and CO 2 emissions in tourism sector of China. Journal of Geographical Sciences, 21(4), 733-745. https://doi.org/10.1007/s11442-011-0876-z

Yorucu, V., & Mehmet, O. (2015). Modeling energy consumption for growth in an open economy: ARDL and causality analysis for Turkey. International Journal of Green Energy, 12(12), 1197-1205. https://doi.org/10.1080/15435075.2014.893437

Zhang, J., & Zhang, Y. (2021). Tourism, economic growth, energy consumption, and CO2 emissions in China. Tourism Economics, 27(5), 1060-1080. https://doi.org/10.1177/1354816620918458

Zhang, L., & Gao, J. (2016). Exploring the effects of international tourism on China's economic growth, energy consumption and environmental pollution: Evidence from a regional panel analysis. Renewable and Sustainable Energy Reviews, 53, 225-234. https://doi.org/10.1016/j.rser.2015.08.040

Zhang, Y.-J., & Wang, W. (2019). Do renewable energy consumption and service industry development contribute to CO 2 emissions reduction in BRICS countries? Environmental Science and Pollution Research, 26(31), 31632-31643. https://doi.org/10.1007/s11356-019-06330-4

Views and opinions expressed in this article are the views and opinions of the author(s), Journal of Tourism Management Research shall not be responsible or answerable for any loss, damage or liability etc. caused in relation to/arising out of the use of the content.