The role of tourism, and natural resources in the energy-pollution-growth nexus: an analysis of belt and road initiative countries

Abstract

The current study brings natural resources, and tourism into the energy-growth, and environment nexus using the STIRPAT model for 88 BRI countries over 1995–2015. Considering the endogeneity, cross-sectional dependence, and slope homogeneity, this study employed dynamic GMM and D&K estimators for three distinct structural equations. For the CO2 equation, the empirical outcomes supported the EKC, energy lead emission, natural resource-based CO2 emissions, and tourism-led CO2 emissions, and on the other hand, renewable energy helps to curb environmental degradation. For the GDP equation, the role of energy, CO2 emissions, tourism development, and renewable energy is positive and contributes significantly to economic growth. The impact of natural resources is negative and significant, thus postulating the “resource curse phenomenon” in BRI countries. For the energy equation, CO2, GDP, and natural resources are escalating energy consumption; while, renewable energy is negatively affecting energy, which indicates that growth in renewable energy tends to discourage the consumption of fossil fuel-based energy in the BRI countries.