The Granger Causality among Tourist Arrival, Economic Growth and CO2 Emissions in Iran

Soheila Khoshnevis Yazdi, Bahman Khanalizadeh, Bahram Shakouri,

Article history:
Received 25 June 2014
Received in revised form
8 July 2014
Accepted 14 September 2014
Available online 10 October 2014
Keywords:
CO2 emissions, Economic growth,
Energy Consumption, Iran, Trade,
ARDL.

A B S T R A C T

This paper explores the relationship between carbon dioxide (CO2) emissions, economic growth, energy consumption, the number of tourist arrivals and trade in Iran spanning the period 1975-2011. The unit root and cointegration tests show that the long-run relationship and the short-run relationship between CO2 emissions and its determinants. The empirical findings reveal the presence of a long-run relationship across the variables under investigation. Furthermore, short-run dynamics show a bidirectional causality running between GDP, energy consumption, the number of tourist arrivals and CO2 emissions. In addition, there is a unidirectional short-run causal link without feedback effects from economic growth to trade and as well as a unidirectional causality running from the number of tourist trade to arrivals. In the long-run, there is sign of bidirectional causality between emissions, renewable energy consumption and the number of tourist arrivals. Long-run estimates highlight that the trade contribute to the reduction of emissions, while both real GDP, and energy consumption the number of tourist arrivals contribute to the increase of emissions.

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