ECONOMIC GROWTH, TOURISM, AND ENERGY USE: DRIVERS OF CO2 EMISSIONS AND THE ENVIRONMENTAL KUZNETS CURVE IN PAKISTAN

Abstract

Tourism has gained prominence due to advancements in communication and transportation. While it boosts economic growth, it also contributes significantly to CO2 emissions. This study explores the relationship between tourism, economic growth, energy consumption, trade openness, and CO2 emissions in Pakistan from 1995 to 2020. Using Fully Modified Ordinary Least Squares (FMOLS) methodology and data from the World Development Indicators (WDI), findings indicate that tourism reduces CO2 emissions when strict regulations are implemented. Economic growth, energy consumption, trade liberalization, and urbanization are key contributors to environmental degradation. Policymakers are encouraged to emphasize sustainable tourism and implement stringent environmental legislation to mitigate emissions.