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Article

The Linkage between Economic Growth, Renewable Energy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union

1
Polytechnic Institute of Santarém, Center for Advanced Studies in Management and Economics, Évora University, and Center for African and Development Studies, Lisbon Univesity, 1200-781 Lisbon, Portugal
2
Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla-La Mancha, 16002 Cuenca, Spain
*
Author to whom correspondence should be addressed.
Energies 2020, 13(18), 4838; https://doi.org/10.3390/en13184838
Received: 30 July 2020 / Revised: 9 September 2020 / Accepted: 15 September 2020 / Published: 16 September 2020
This paper evaluates the link between economic growth, renewable energy, tourism arrivals, trade openness, and carbon dioxide emissions in the European Union (EU-28). As an econometric strategy, the research uses panel data. In the first step, we apply the unit root test, and the results demonstrated that the variables used in this study are integrated I (1) in the first difference. In the second step, we apply the Pedroni cointegration test, and Kao Residual cointegration test, and we observe that the variables are cointegrated in the long run. The panel fully modified least squares (FMOLS), panel dynamic least squares (DOLS), and generalized moments system (GMM-System) estimator are considered in this research. The econometric results proved that trade openness and renewable energy decreased climate change and environmental degradation. The empirical study also found a positive effect of economic growth on carbon dioxide emissions. Moreover, tourism arrivals are negatively correlated with carbon dioxide emissions, showing sustainability practices of the tourism sector on the environment. Furthermore, carbon dioxide emissions in the long run present a positive impact, indicating that climate change increases. In this study, we also consider the recent methodology of Dumitrescu–Hurlin to observe the causality and the relationship between renewable energy, trade openness, economic growth, tourism arrivals, and carbon dioxide emissions. View Full-Text
Keywords: environmental damage; renewable energy; trade openness; tourism; panel cointegration; GMM-System estimator environmental damage; renewable energy; trade openness; tourism; panel cointegration; GMM-System estimator
MDPI and ACS Style

Leitão, N.C.; Lorente, D.B. The Linkage between Economic Growth, Renewable Energy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union. Energies 2020, 13, 4838. https://doi.org/10.3390/en13184838

AMA Style

Leitão NC, Lorente DB. The Linkage between Economic Growth, Renewable Energy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union. Energies. 2020; 13(18):4838. https://doi.org/10.3390/en13184838

Chicago/Turabian Style

Leitão, Nuno C., and Daniel B. Lorente 2020. "The Linkage between Economic Growth, Renewable Energy, Tourism, CO2 Emissions, and International Trade: The Evidence for the European Union" Energies 13, no. 18: 4838. https://doi.org/10.3390/en13184838

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