The moderating role of technological innovation between tourism and carbon emission: short and long-run panel analysis

In contemporary times of globalization, tourism and travel are among the fastest-growing economic sectors and are highly related to climate change; however, technological innovations as a powerful tool positively contribute to the environment. The present study examines the tourism receipt and CO2 emission relationship and the triple interaction effect of technological innovation, energy consumption, and tourism receipts on CO2 emissions in the short and long run. To achieve study objectives, we utilized panel data of 64 Belt and Road Initiative (BRI) countries over the period of 1995 to 2019. Considering the cross-sectional dependence in the panel data set, we employed a series of econometric panel data estimation techniques-including the panel unit root tests, panel co-integration tests, and the generalized method of moments (GMM). The panel unit root results confirmed the level of stationarity, and the panel co-integration results verified the long-run relationship among study variables. The sys-GMM results indicate that tourism receipts and CO2 emissions have an inverse relationship for 64 BRI countries. In addition, the negative coefficients for joint interaction imply that tourism receipts, technological innovation, and energy consumption reduce CO2 emissions. Considering the theoretical underpinnings of the study outcomes, we discussed significant policy implications to reduce CO2 emissions and achieve sustainable tourism.