Renewable energy matters for tourism ındustry in brics+t countries

Abstract

The scope of this paper is to investigate whether or not the renewable energy influences the tourism industry in the case of BRICS+Turkey countries. Due to the fact that the primary energy source in these countries is fossil fuels, this has risen up a serious concern on environmental issues. The motivation to select these countries lies in the fact that all of these six have recorded an exponential economic growth in the last few decades. As a consequence, the standard of living has been increased as well as the energy consumption. Thus, the annual panel data are collected in the period between 1995 and 2015 in the case of BRICS countries plus Turkey to explore the link of interest. We have employed the panel VAR methodology. The most important findings suggest a response of tourism industry to renewable energy to be significant and negative. However, this negative relationship holds true in the short-run while the longrun impact tends to be positive. These results can be of great importance for policy makers, thus this paper summarizes in detail the policy implications