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Do Tourism Development, Energy Consumption and Transportation Demolish Sustainable Environments? Evidence from Chinese Provinces

Author

Listed:
  • Abdul Rauf

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

  • Ilhan Ozturk

    (Faculty of Economics and Administrative Sciences, Cag University, Mersin 33800, Turkey
    Department of Medical Research, China Medical University Hospital, Taichung 406040, Taiwan)

  • Fayyaz Ahmad

    (School of Economics, Lanzhou University, Lanzhou 730000, China)

  • Khurram Shehzad

    (School of Economics and Management, Southeast University, Nanjing 211189, China)

  • Abbas Ali Chandiao

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Muhammad Irfan

    (School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
    Department of Business Administration, ILMA University, Karachi 75190, Pakistan)

  • Saira Abid

    (School of Public Administration, Hohai University, Nanjing 210098, China)

  • Li Jinkai

    (Centre for Energy, Environment & Economy Research, Zhengzhou University, Zhengzhou 450001, China)

Abstract

China is performing a dominant role in the world’s economic growth, but it has mainly been the commencement of the Belt and Road Initiative (BRI) that has significantly increased its importance around the world. Recently, the emergence of the tourism industry has been considered as an alternative for sustainable economic and ecological development, which is ironic. Although China is promoting tourism in various regions under “The New Normal” phase, it needs to proactively address the challenges of dismantling, for the environment. The fundamental objective of the current study is to determine the long-term affiliation between tourism development, economic progress, transportation, energy consumption, value added hotel catering services, and environmental degradation (CO 2 ) for a panel of thirty (30) provinces of China over the period of 1995–2017. Primarily, we applied the CD test for investigating cross dependence; subsequently, conventional and CD based panel unit root tests (CIPS) were carried out to deal with the puzzle of the stationarity of the panel series. The results of the dynamics panel, DOLS, FMOLS, and PMG, indicated that transportation, energy consumption, and value added hotel and catering services have a strong positive association with carbon emission, but tourism development has mixed links with ecological degradation. Additionally, the causative based test revealed the bidirectional association of tourism development, transportation, economic progress, and energy consumption with environmental quality. The retrieved estimates conferred a few guidelines, concerning the presence of BRI projects, for the Chinese administration at the provincial and national level: initiating the renewable based energy projects and possibly wishing to decrease the use of fossil fuel based energy in the industry, transportation, and hotels and catering sectors. Furthermore, the prevalence of green investment in provinces may motivate economic progress and tourism development, without worsening the atmosphere.

Suggested Citation

  • Abdul Rauf & Ilhan Ozturk & Fayyaz Ahmad & Khurram Shehzad & Abbas Ali Chandiao & Muhammad Irfan & Saira Abid & Li Jinkai, 2021. "Do Tourism Development, Energy Consumption and Transportation Demolish Sustainable Environments? Evidence from Chinese Provinces," Sustainability, MDPI, vol. 13(22), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12361-:d:675208
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    References listed on IDEAS

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