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Testing the tourism-induced EKC hypothesis: The case of Singapore

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  • Katircioğlu, Salih Turan

Abstract

This study investigates the relationship between tourism development and carbon emissions in Singapore through testing Environmental Kuznets Curve hypothesis, which is a major tourist destination state and whose economy is linked with diverse energy resources, high-level urbanization, and rapid industrialization. Results reveal that tourism development and carbon emissions are in long-term equilibrium relationship; carbon dioxide emission converges to its long-term equilibrium level by 76.0% speed of adjustment through the channels of tourism, energy consumption, and output growth. Tourist arrivals have a negatively significant effects on carbon dioxide emission levels both in the long-term and the short-term periods. Finally, results of the Granger causality tests reveal that there is unidirectional causality that runs from tourism development to carbon emission growth in the long-term of the economy of Singapore. Therefore, the tourism-induced EKC hypothesis is confirmed in the case of Singapore.

Suggested Citation

  • Katircioğlu, Salih Turan, 2014. "Testing the tourism-induced EKC hypothesis: The case of Singapore," Economic Modelling, Elsevier, vol. 41(C), pages 383-391.
  • Handle: RePEc:eee:ecmode:v:41:y:2014:i:c:p:383-391
    DOI: 10.1016/j.econmod.2014.05.028
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