IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2019-03-40.html
   My bibliography  Save this article

Impact of Environmental Policy Factors on Tourism Industry: A Study from Indonesia Over Last Three Decades

Author

Listed:
  • Andriansyah Andriansyah

    (Universitas Prof. Dr. Moestopo (Beragama), Indonesia)

  • Taufiqurokhman Taufiqurokhman

    (Universitas Prof. Dr. Moesto (Beragama), Indonesia,)

  • Ismail Suardi Wekke

    (Sekolah Tinggi Agama Islam Negeri (STAIN) Sorong, Indonesia.)

Abstract

The purpose of the present study analysis is to empirically examine the impact of various environmental factors on the Tourism industry in Indonesia. To achieve this objective, data is collected from World Development Indicators during the time of 1996-2016 under the title of environmental factors as defined by the experts of the world bank. Atime of 22 years has been finalized for the predictors of tourism industry like forest area (FA), population growth, energy use, agriculture, forestry and fishing along with CO2 emissions. Both descriptive and regression analysis techniques have been applied while adding the lagged predictors of both tourism industry and environmental factors. Eight regression models have been developed and results are generated through statistical tools like STATA-14. Findings of the study indicate that FA and population growth are the significant determinants of the tourism industry. Among the lagged predictors, international tourism (lagged), Nitrous oxide emissions, and lagged values of FA are significantly affecting international tourism receipt (ITR) in the region of Indonesia. For the 2nd proxy; tourism expenditures, the key determinants under model 5 8 are, international tourism (lagged), Nitrous oxide emissions (lagged), CO2 emission (lagged) and population growth. As per the practical implications, this study is very much useful for both the industry experts and policymakers at macro-level. Considering the set of factors as explained in the present study will provide new insight regarding sustainable development through environmental factors of the tourism industry. However, the key limitations are the lack of advance time series investigation, ignoring the impact of macroeconomic indicators and cross region analysis.

Suggested Citation

  • Andriansyah Andriansyah & Taufiqurokhman Taufiqurokhman & Ismail Suardi Wekke, 2019. "Impact of Environmental Policy Factors on Tourism Industry: A Study from Indonesia Over Last Three Decades," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 360-365.
    • Handle: RePEc:eco:journ2:2019-03-40
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/7754/4350
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/7754/4350
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sung Yu-Chi, 2018. "Revisiting the Tourism-Led Growth Hypothesis in a Dual Model Using Mwald Granger Causality Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(8), pages 1102-1110, August.
    2. Minna Halme, 2001. "Learning for sustainable development in tourism networks," Business Strategy and the Environment, Wiley Blackwell, vol. 10(2), pages 100-114, March.
    3. Emmanuel Okokondem Okon, 2014. "Inbound Tourism and Social Factors in Nigeria: Evidence from an Ardl-Ecm Model," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 1(2), pages 40-47.
    4. Elnaz Ghasemi, 2016. "Effects of Environmental Satisfaction on Family Displacement Case Study: Gohar Dasht Region, Karaj City," Journal of Social Economics Research, Conscientia Beam, vol. 3(3), pages 31-40.
    5. Siti Nor Ain Mayan & Radieah Mohd Nor, 2017. "Prospects and Challenges of Ecotourism Sector and Poverty Eradication in Sabah: The Case of Orangutans and Mabul Island," Global Journal of Social Sciences Studies, Pacharapa Naka, vol. 3(1), pages 1-12.
    6. Faten M. Hussien & Eleri Jones, 2016. "The Requirements of Disabled Customers: A Study of British Customers in Egyptian Hotels," Journal of Tourism Management Research, Conscientia Beam, vol. 3(2), pages 56-73.
    7. Bill Hopwood & Mary Mellor & Geoff O'Brien, 2005. "Sustainable development: mapping different approaches," Sustainable Development, John Wiley & Sons, Ltd., vol. 13(1), pages 38-52.
    8. Sung Yu-Chi & Hung-Pin Lin, 2018. "Causality Relationship between Tourism, Foreign Direct Investment and Economic Growth in Taiwan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(3), pages 287-293.
    9. Jennifer Min & Hui-Wen Vivian Tang & Chun An Chen, 2016. "Ranking the Personal Excellence Training Needs of Undergraduate Tourism Students," Journal of Tourism Management Research, Conscientia Beam, vol. 3(2), pages 37-46.
    10. Emmanuel Okokondem Okon, 2014. "Inbound Tourism and Social Factors in Nigeria: Evidence from an Ardl-Ecm Model," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 1(2), pages 40-47.
    11. Siti Nor ‘Ain Mayan & Radieah Mohd Nor, 2017. "Prospects and Challenges of Ecotourism Sector and Poverty Eradication in Sabah: The Case of Orangutans and Mabul Island," Global Journal of Social Sciences Studies, Online Science Publishing, vol. 3(1), pages 1-12.
    12. Ufomba Henry, 2014. "Globalization and Environmental Issues: A New Framework for Security Analysis," Humanities and Social Sciences Letters, Conscientia Beam, vol. 2(4), pages 209-216.
    13. Ramazan Goral & Erkan Akgoz, 2017. "Tourism Price Competition Index for National Destinations," Journal of Tourism Management Research, Conscientia Beam, vol. 4(1), pages 17-29.
    14. Elnaz Ghasemi, 2016. "Effects of Environmental Satisfaction on Family Displacement Case Study: Gohar Dasht Region, Karaj City," Journal of Social Economics Research, Conscientia Beam, vol. 3(3), pages 31-40.
    15. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    16. Elham Hosseinnia & Baharak Shoja, 2017. "The Role of Handicrafts in the Sustainable Development of Rural Tourism with an Emphasis on Indigenous Knowledge," International Journal of Geography and Geology, Conscientia Beam, vol. 6(1), pages 1-7.
    17. Aysa Ipek Erdogan, 2016. "Investigating the Demand of Small Hotel and Restaurant Businesses for Bank Financing: The Case of Turkey," Journal of Empirical Studies, Conscientia Beam, vol. 3(1), pages 1-6.
    18. Mohd Taqi & Mohd Ajmal & Mohd Shamim Ansari, 2018. "Financial Efficiency of India Tourism Development Corporation (ITDC) Limited: An Empirical Study," Journal of Tourism Management Research, Conscientia Beam, vol. 5(1), pages 14-22.
    19. Aysa Ipek Erdogan, 2016. "Investigating the Demand of Small Hotel and Restaurant Businesses for Bank Financing: The Case of Turkey," Journal of Empirical Studies, Conscientia Beam, vol. 3(1), pages 1-6, 03-2016.
    20. Rana Ejaz Ali Khan & Muhammad Kamran Rasheed, 2016. "Political Economy of Tourism in Pakistan: The Role of Terrorism and Infrastructure Development," Asian Development Policy Review, Asian Economic and Social Society, vol. 4(2), pages 42-50.
    21. Rana Ejaz Ali Khan & Muhammad Kamran Rasheed, 2016. "Political Economy of Tourism in Pakistan: The Role of Terrorism and Infrastructure Development," Asian Development Policy Review, Asian Economic and Social Society, vol. 4(2), pages 42-50, June.
    22. Elham Hosseinnia & Baharak Shoja, 2017. "The Role of Handicrafts in the Sustainable Development of Rural Tourism with an Emphasis on Indigenous Knowledge," International Journal of Geography and Geology, Conscientia Beam, vol. 6(1), pages 1-7.
    23. Ahmad Zomorrodi & Xiaoyan Zhou, 2017. "Impact of FDI on Environmental Quality of China," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(1), pages 1-15.
    24. Muhammad Haseeb & Sallahuddin Hassan & Muhammad Azam & Tulus Suryanto, 2018. "The dynamics of governance, tourism and environmental degradation: the world evidence," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 17(4), pages 340-363.
    25. Ramazan Göral & Erkan Akgöz, 2017. "Tourism Price Competition Index for National Destinations," Journal of Tourism Management Research, Conscientia Beam, vol. 4(1), pages 17-29.
    26. Sung Yu-Chi, 2018. "Revisiting the Tourism-Led Growth Hypothesis in a Dual Model Using Mwald Granger Causality Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(8), pages 1102-1110.
    27. Jennifer Min & Hui-Wen Vivian Tang & Chun An Chen, 2016. "Ranking the Personal Excellence Training Needs of Undergraduate Tourism Students," Journal of Tourism Management Research, Conscientia Beam, vol. 3(2), pages 37-46.
    28. Faten M Hussien & Eleri Jones, 2016. "The Requirements of Disabled Customers: A Study of British Customers in Egyptian Hotels," Journal of Tourism Management Research, Conscientia Beam, vol. 3(2), pages 56-73.
    29. Mohd Taqi & Mohd Ajmal & Mohd. Shamim Ansari, 2018. "Financial Efficiency of India Tourism Development Corporation (ITDC) Limited: An Empirical Study," Journal of Tourism Management Research, Conscientia Beam, vol. 5(1), pages 14-22.
    30. Sung Yu-Chi & Hung-Pin Lin, 2018. "Causality Relationship between Tourism, Foreign Direct Investment and Economic Growth in Taiwan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 6(3), pages 287-293, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Silvia London & Mara Leticia Rojas & Karen Natalí Candias, 2021. "Turismo sostenible: un modelo de crecimiento con recursos naturales," Ensayos de Economía 19348, Universidad Nacional de Colombia Sede Medellín.
    2. Alfonsus Budi Susanto, 2019. "The Effect Of Government Policy And Environmental Sustainability On The Performance Of Tourism Business Competitiveness: Empirical Assessment On The Reports Of International Tourism Agencies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 439-446.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Azhar Susanto & Meiryani Meiryani, 2019. "The impact of Environmental Accounting Information System Alignment on Firm Performance and Environmental Performance: A case of Small and Medium Enterprises s of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 229-236.
    2. Ahmed Nahar Al-Hussaini, 2019. "The Role of Financial Management in Testing Environmental Kuznets Curve in Kuwait: Evidence from ARDL Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 353-359.
    3. Muhammad Yusuf & Zakir Sabara & Ismail Suardi Wekke, 2019. "Role of Innovation in Testing Environment Kuznets Curve: A Case of Indonesian Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 276-281.
    4. Andhyka Tyaz Nugraha & Nor Hasni Osman, 2019. "CO2 Emissions, Economic Growth, Energy Consumption, and Household Expenditure for Indonesia: Evidence from Cointegration and Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 291-298.
    5. Winwin Yadiati & Nissa Nissa & Sugiono Paulus & Harry Suharman & Meiryani Meiryani, 2019. "The Role of Green Intellectual Capital and Organizational Reputation in Influencing Environmental Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 261-268.
    6. Ratneswary Rasiah & Vinitha Guptan & Muzafar Shah Habibullah, 2018. "Evaluating the Impact of Financial and Economic Factors on Environmental Degradation: A Panel Estimation Study of Selected Asean Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 209-216.
    7. Abdul Rehman & Hengyun Ma & Muhammad Irfan & Munir Ahmad & Ousmane Traore, 2020. "Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach," SAGE Open, , vol. 10(2), pages 21582440209, June.
    8. Siti Nurzahira Che Tahrim & Mohd Zulkifli Muhammad & Mohd Syakir Mohd Rosdi & Mohd Nor Hakimin Yusoff & Azizah Musa & Noormariana Mohd Din, 2019. "The Revival of Mudharabah Contract: A Proposed Framework," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(2), pages 70-73, July.
    9. Wanjun Xia & Buhari Doğan & Umer Shahzad & Festus Fatai Adedoyin & Abiodun Popoola & Muhammad Adnan Bashir, 2022. "An empirical investigation of tourism-led growth hypothesis in the European countries: evidence from augmented mean group estimator," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(2), pages 239-266, May.
    10. Rana Ejaz Ali Khan & Tusawar Iftikhar Ahmad & Jaweria Haleem, 2021. "The Governance and Tourism: A Case of Developing Countries," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 9(3), pages 199-213, September.
    11. Ximeng Zhang & Myeong Cheol Choi, 2019. "Study on the Development Strategy of Ant Financial," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 262-268, August.
    12. Obed I. Ojonta & Jonathan E. Ogbuabor, 2024. "Effects of tourism and institutional quality on infrastructural development in Africa: new evidence from the system GMM technique," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 59(2), pages 101-117, April.
    13. Abdur Rauf & Hafiz Muhammad Abubakar Siddique & Qasim Saleem & Sidra, 2020. "Terrorism and International Tourism Nexus: Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 387-393.
    14. Oussama Saoula & Muhammad Fareed & Saiful Azizi Ismail & Nurul Sharniza Husin & Rawiyah Abd Hamid, 2019. "A Conceptualization of the Effect of Organisational Justice on Turnover Intention: The Mediating Role of Organisational Citizenship Behaviour," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 327-337, August.
    15. Zalina Zainudin & Zarina Mohd Zaki & Abdul Razak Abdul Hadi & Hafezali Iqbal Hussain & Mazhar Hallak Kantakji, 2019. "Investor Sentiment and Firm Financial Performance of Malaysian IPO Firms: Pre and Post Financial Crisis," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 450-458, August.
    16. Adelina-Andreea Siriteanu & Erika-Maria Doacă, 2023. "Application of ARDL modelling in global structural shocks and their dynamic impact on FDI," Journal of Financial Studies, Institute of Financial Studies, vol. 14(8), pages 181-191, May.
    17. Quan-Jing Wang & Qiong Shen & Yong Geng & Dan-Yang Li, 2022. "Does Overseas Investment Raise Corporate Environmental Protection? Evidence from Chinese A-List Companies," IJERPH, MDPI, vol. 19(2), pages 1-15, January.
    18. Nik Azmiah Binti Nik Azin & Norhayati bt Alias, 2019. "Value Relevance of Intangible Assets Before and After FRS 138 Adoptions: Evidence From Malaysia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 267-279, May.
    19. Amzad Hossain & Farid A. Sobhani & Normah Omar & Norazida Mohamad & Jamaliah Said, 2019. "Corporate Governance, Risk Management and Ethical Investment: Evidence From Banking Industries," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 126-137, August.
    20. Jiang Du & Mengqin Zhao & Ming Zeng & Kezhen Han & Huaping Sun, 2020. "Spatial Effects of Urban Agglomeration on Energy Efficiency: Evidence from China," Sustainability, MDPI, vol. 12(8), pages 1-19, April.

    More about this item

    Keywords

    World Development Indicators; Environmental Factors; Tourism Industry; Indonesia;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2019-03-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.