MODELING TOURISM–ENVIRONMENT RELATIONSHIP IN AUSTRALIA: DOES ASYMMETRY MATTER?

2021 ◽  
pp. 1-31
Author(s):  
ALEX O. ACHEAMPONG
Keyword(s):  
Carbon Emissions ◽  
Environmental Effect ◽  
Empirical Studies ◽  
Tourism Demand ◽  
Bounds Testing ◽  
Econometric Estimation ◽  
Estimation Techniques ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Asymmetric Cointegration

Prior empirical studies have employed various econometric estimation techniques to study the environmental effect of tourism demand. Prominently, these econometric modeling techniques implicitly assume that the environmental effect of tourism is symmetrical, which could sometimes be problematic. This study, therefore, utilized two econometric estimation techniques, namely, the Pesaran et al. ( 2001 ). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326) symmetric autoregressive distributed lag (ARDL) and Shin et al. ( 2014 ). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In Festschrift in Honor of Peter Schmidt, pp. 281–314. New York: Springer) nonlinear ARDL (NARDL) estimation technique to disentangle the effect of tourism demand on carbon emissions in Australia. The results from the symmetric ARDL model reveal that tourism demand significantly increases carbon emissions in the long run, indicating that a 1% increase in tourism demand contributes to a 0.155% increase in carbon emissions in the long run. Contrarily, the NARDL model shows that a positive shock (an increase) in tourism demand reduces carbon emissions while a negative shock (a decrease) in tourism demand increases carbon emissions in the long run. From the NARDL estimate, a 1% increase in tourism demand is associated with a 0.220% decline in carbon emissions, while a 1% decrease in tourism demand increases carbon emissions by 0.250%. Therefore, I argue that carbon emissions depend not only on the size of tourism demand but also on the pattern — thus the increase and decline — of tourism demand. The implications of these results for policy are discussed.

scholarly journals Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3165
Author(s):  
Eva Litavcová ◽  
Jana Chovancová
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Bounds Testing ◽  
Mutual Cooperation ◽  
Long Run ◽  
Short Run ◽  
Danube Region ◽  
The Impact

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

scholarly journals Macroeconomic Factors and Equity Prices: An Empirical Investigation by Using ARDL Approach

2008 ◽  
Vol 47 (4II) ◽  
pp. 501-513 ◽  
Author(s):  
Arshad Hasan ◽  
Zafar Mueen Nasir
Keyword(s):  
Empirical Studies ◽  
Testing Procedure ◽  
Bounds Testing ◽  
Macroeconomic Factors ◽  
Equity Prices ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Ardl Approach ◽  
The Impact ◽  
The Relationship

The relationship between macroeconomic variables and the equity prices has attracted the curiosity of academicians and practitioners since the publication of seminal paper of Chen, et al. (1986). Many empirical studies those tested the relationship reveal that asset pricing theories do not properly identify macroeconomic factors that influence equity prices [Roll and Ross (1980); Fama (1981); Chen, et al. (1986); Hamao (1986); Faff (1988); Chen (1991); Maysami and Koh (2000) and Paul and Mallik (2001)]. In most of these studies, variable selection and empirical analyses is based on economic rationale, financial theory and investors’ intuition. These studies generally apply Eagle and Granger (1987) procedure or Johanson and Jusilieus (1990, 1991) approach in Vector Auto Regressor (VAR) Framework. In Pakistan, Fazal (2006) and Nishat (2001) explored the relationship between macroeconomic factors and equity prices by using Johanson and Jusilieus (1990, 1991) procedure. The present study tests the relationship between macroeconomic variables such as inflation, industrial production, oil prices, short term interest rate, exchange rates, foreign portfolio investment, money supply and equity prices by using Auto Regressive Distributive Lag (ARDL) bounds testing procedure proposed by Pesaran, Shin, and Smith (1996, 2001). The ARDL approach in an errorcorrection setting has been widely applied to examine the impact of macroeconomic factors on economic growth but it is strongly underutilised in the capital market filament of literature. This methodology has a number of advantages over the other models. First, determining the order of integration of macroeconomic factors and equity market returns is not an important issue here because the Pesaran ARDL approach yields consistent estimates of the long-run coefficients that are asymptotically normal irrespective of whether the underlying regressors are I(0) or I(1) and of the extent of cointegration. Secondly, the ARDL approach allows exploring correct dynamic structure while many econometric procedures do not allow to clearly distinguish between long run and short run relationships.

ANALYZING THE ASYMMETRIC EFFECTS OF CRUDE OIL PRICE CHANGES ON CHINA’S PETROLEUM PRODUCT PRICES

2020 ◽  
pp. 1-20
Author(s):  
XIANCHUN LIAO ◽  
JUNGHO BAEK
Keyword(s):  
Crude Oil ◽  
Oil Prices ◽  
Price Transmission ◽  
Gasoline Prices ◽  
Distributed Lag ◽  
Nonlinear Ardl ◽  
Crude Oil Prices ◽  
Long Run ◽  
Pass Through ◽  
Asymmetric Cointegration

As the world’s second-largest crude oil consumer, China depends on imports for approximately 60% and domestic production for approximately 40%, of its oil demand. Therefore, it is very interesting to assess the pass-through effects of both domestic and international crude oil prices to gasoline and diesel prices. After the short- and long-run investigations using the nonlinear autoregressive distributed lag (ARDL) methodology of Shin et al. [Shin, Y, BC Yu and M Greenwood-Nimmo (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework” Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications, R Sickels and W Horrace (eds.), pp. 281–314. Springer.], we find overwhelming evidence supporting the asymmetric price transmission mechanism between crude oil prices and gasoline prices in both the short- and long-run. In the case of diesel prices, on the other hand, the asymmetry effects seem likely to be a long-run phenomenon.

Does Temperature Contribute to Environment Degradation? Pakistani Experience Based on Nonlinear Bounds Testing Approach

2020 ◽  
pp. 097215092091665 ◽  
Author(s):  
Muhammad Saeed Meo ◽  
Solomon Prince Nathaniel ◽  
Muhammad Murtaza Khan ◽  
Qasim Ali Nisar ◽  
Tehreem Fatima
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Energy Use ◽  
Global Climate ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Global Climate Changes ◽  
Long Run ◽  
Short Run

Many developing countries are acutely vulnerable to global climate changes. In Pakistan, carbon emissions are primarily contributed by the factor of energy production from oil, gas and coal. The objective of this study is to estimate the asymmetric impact of temperature, energy use, economic growth, water scarcity on CO2 emissions in Pakistan over their period of 1960–2016. Based on nonlinear bounds testing (NARDL) approach, it is confirmed that there is an asymmetric relationship between temperature and CO2 emission, while energy use, population growth and economic growth have a positive effect in the short run. In the long run, energy consumption and economic growth were found to increase emission, while a temperature decrease by 1 per cent leads to 5 per cent decrease in carbon emissions. Population and water availability also reduces emission in Pakistan. Further, the study also confirms the long-run relationship between the variables. The finding of the study noticeably supports the policy to increase renewable energy consumption.

scholarly journals Dynamic linkages between renewable energy, carbon emissions and economic growth through nonlinear ARDL approach: Evidence from Iran

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0253464
Author(s):  
M. S. Karimi ◽  
S. Ahmad ◽  
H. Karamelikli ◽  
D. T. Dinç ◽  
Y. A. Khan ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Gdp Per Capita ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Economic Implications ◽  
Long Run ◽  
Per Capita

This study examines the relationship between economic growth, renewable energy consumption, and carbon emissions in Iran between 1975–2017, and the bounds testing approach to cointegration and the asymmetric method was used in this study. The results reveal that in the long run increase in renewable energy consumption and CO2 emissions causes an increase in real GDP per capita. Meanwhile, the decrease in renewable energy has the same effect, but GDP per capita reacts more strongly to the rise in renewable energy than the decline. Besides, in the long run, a reduction of CO2 emissions has an insignificant impact on GDP per capita. Furthermore, the results from asymmetric tests suggest that reducing CO2 emissions and renewable energy consumption do not have an essential role in decreasing growth in the short run. In contrast, an increase in renewable energy consumption and CO2 emissions do contribute to boosting the growth. These results may be attributable to the less renewable energy in the energy portfolio of Iran. Additionally, the coefficients on capital and labor are statistically significant, and we discuss the economic implications of the results and propose specific policy recommendations.

scholarly journals Asymmetric Impact of International Trade on Consumption-Based Carbon Emissions in MINT Nations

Energies ◽  
2021 ◽  
Vol 14 (20) ◽  
pp. 6581
Author(s):  
Tomiwa Sunday Adebayo ◽  
Abraham Ayobamiji Awosusi ◽  
Husam Rjoub ◽  
Mirela Panait ◽  
Catalin Popescu
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Carbon Emissions ◽  
Causality Test ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Short Run ◽  
Asymmetric Impact ◽  
Positive Shock ◽  
Bds Test

The association between carbon emissions and international trade has been examined thoroughly; however, consumption-based carbon emissions, which is adjusted for international trade, have not been studied extensively. Therefore, the present study assesses the asymmetric impact of trade (import and export) and economic growth in consumption-based carbon emissions (CCO2) using the MINT nations (Mexico, Indonesia, Nigeria and Turkey) as a case study. We applied the Nonlinear ARDL to assess this connection using dataset between 1990 and 2018. The outcomes from the BDS test affirmed the use of nonlinear techniques. Furthermore, the NARDL bounds test confirmed long-run association between CCO2 and exports, imports and economic growth. The outcomes from the NARDL long and short-run estimates disclosed that positive (negative) shocks in imports increase (decrease) CCO2 emissions in all the MINT nations. Moreover, positive (negative) shocks in exports decrease (increase) CCO2 emissions in all the MINT nations. As expected, a positive shock in economic growth triggers CCO2 emissions while a negative shift does not have significant impact on CCO2 emissions in the MINT nations. Furthermore, we applied the Gradual shift causality test and the outcomes disclose that imports and economic growth can predict CCO2 emissions in the MINT nations. The study outcomes have significant policy recommendations for policymakers in the MINT nations.

scholarly journals Economic Growth And Carbon Emissions In South Africa: An Empirical Investigation

2011 ◽  
Vol 10 (7) ◽  
pp. 75 ◽  
Author(s):  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Empirical Investigation ◽  
Output Growth ◽  
Bounds Testing ◽  
Conservation Policies ◽  
Long Run

In this paper we examine the causal relationship between CO2 emissions and economic growth in South Africa - using the newly developed ARDL-Bounds testing approach. We incorporate energy consumption in a bivariate causality setting between CO2 emissions and economic growth, thereby creating a simple trivariate model. Our empirical results show that there is a distinct unidirectional causal flow from economic growth to carbon emissions in South Africa. We also find that energy consumption Granger-causes both carbon emissions and economic growth. We recommend that energy conservation policies, as well as appropriate forms of renewable energy, should be explored in South Africa in order to enable the country to reduce its carbon emission footprint without necessarily sacrificing its output growth. The results apply irrespective of whether the causality is estimated in the short or in the long run.

Does Oil Price Asymmetrically Impact Remittance Outflows? The Case of Oman

2019 ◽  
Vol 15 (2) ◽  
Author(s):  
Selçuk Akçay
Keyword(s):  
New York ◽  
Oil Prices ◽  
Oil Price ◽  
Distributed Lag ◽  
Nonlinear Ardl ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model ◽  
Asymmetric Impact ◽  
Asymmetric Cointegration

Abstract The mechanism by which oil price affects remittance outflows is not well understood and investigated. Using non-linear autoregressive distributed lag model (Shin, Yu, and. Greenwood-Nimmo. 2014. “Modelling Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Framework.” In Festschrift in Honor of Peter Schmidt, vol. 44, edited by R. C. Sickles, and W. C. Horrace, 281–314. New York: Springer New York. https://doi.org/10.1007/978-1-4899-8008-3_9), this study mainly seeks to investigate the asymmetric impact of oil prices on remittance outflows over the period from 1975 to 2015, for an oil-based economy, Oman. The results of the study reveal that changes in oil price are asymmetrically associated with remittance outflows in both short and long run. Furthermore, the response of remittance outflows to developments in oil prices is different in a way that positive shocks in oil prices promote remittance outflows, while negative shocks have no significant impact.

Asymmetric Tourism Demand Responses to Exchange Rate Fluctuations in South Korea

2020 ◽  
Vol 25 (1) ◽  
pp. 63-75
Author(s):  
Junwook Chi
Keyword(s):  
Exchange Rate ◽  
South Korea ◽  
Exchange Rate Volatility ◽  
Tourism Demand ◽  
Demand Functions ◽  
Nonlinear Ardl ◽  
Exchange Rate Fluctuations ◽  
Long Run ◽  
Asymmetrical Pattern ◽  
Exchange Rate Changes

Since perfectly reversible demand functions are generally used in tourism demand modeling, little attention has been given to the asymmetric tourist responses to exchange rate changes. This article attempts to fill this gap by examining two types of the asymmetric demand responses associated with exchange rate fluctuations: 1) currency appreciations and depreciations and 2) rises and falls in exchange rate volatility. Using the linear and nonlinear ARDL models, this study finds evidence of the asymmetrical pattern of long-run adjustment with respect to currency value and exchange rate volatility changes. In the majority of cases, tourists are sensitive to exchange rate changes when the Korean won appreciates, but they are insensitive when the Korean won depreciates, suggesting that foreign visitors in South Korea are loss averse. Furthermore, increases and decreases in exchange rate volatility tend to affect Korea's inbound tourism demand in an asymmetric manner. These findings imply that the assumption of perfectly reversible tourism demand responses to exchange rate changes can be restrictive.

The unemployment-entrepreneurship nexus: new evidence from 30 Iranian provinces

2019 ◽  
Vol 15 (3) ◽  
pp. 469-489 ◽  
Author(s):  
Iman Cheratian ◽  
Antonio Golpe ◽  
Saleh Goltabar ◽  
Jesus Iglesias
Keyword(s):  
Granger Causality ◽  
Developing Economies ◽  
Empirical Studies ◽  
Entrepreneurial Activity ◽  
Empirical Literature ◽  
Bounds Testing ◽  
Content Type ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Vecm Granger Causality

Purpose During recent years, the nexus between unemployment and entrepreneurship has been examined in depth in developed and industrialised economies but rarely in developing economies. The purpose of this paper is to investigate such a relation in the case of 30 Iranian provinces from 2005Q2 to 2017Q4. Using both the autoregressive distributed lag (ARDL) bounds testing and vector error correction method (VECM) Granger causality approaches, the findings show that a unidirectional short-run causal relationship from entrepreneurship to unemployment and vice versa was observed in 13 and 10 per cent of provinces, respectively. The authors also find evidence for unidirectional long-run causality in 77 per cent of provinces from unemployment to entrepreneurship, as well as 10 per cent of provinces from entrepreneurship to unemployment. Finally, the results confirm that in long-run, the “prosperity-pull” effects are considerably stronger than the “recession-push” effects in Iranian provinces. Design/methodology/approach The main target of this paper is to investigate the unemployment-entrepreneurship in the case of 30 Iranian provinces from 2005Q2 to 2017Q4 by using ARDL bounds testing and VECM Granger causality approaches. Findings The results confirm that in long-run, the “prosperity-pull” effects are considerably stronger than the “recession-push” effects in Iranian provinces. This finding reveals that the unemployment rate can be regarded as a critical instrument for hindering entrepreneurial activity by increasing the risk of business bankruptcy and pulling entrepreneurs out of self-employment. All these results must be taken into account in the construction of useful economic policies for the Iranian labour market. Originality/value The economic literature reveals that most empirical studies of the nexus between unemployment and entrepreneurship examined developed and industrialised economies and the analysis of such a relation for developing countries has not been considered by researchers. Thus, to fill this gap, this paper extends the current empirical literature by presenting new empirical evidence for the case of Iran, which has a developing economy.

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