Toward environmental sustainability: Nexus between tourism, economic growth, energy use and carbon emissions in Singapore

Abstract

Singapore is a renowned tourist destination; however, the country's rapid economic growth has led to rising energy consumption and carbon emissions. This study aims to examine the factors that contribute to carbon dioxide (CO₂) emissions in Singapore, including tourism, economic growth, and energy use. The dynamic ordinary least squares (DOLS) approach was used to analyze time series data from 1990 to 2020. The results of the empirical study revealed that the tourist coefficient is positive and significant. A 0.50% increase in CO₂ emissions relates to a 1% increase in tourism activities over time, according to the findings. In addition, the result indicates that the economy's long-run growth coefficient is significantly negative. This shows that a 1% economic growth will reduce CO₂ emissions by 0.03% in the long run. Furthermore, a positive and statistically significant correlation for energy consumption suggests that a long-term increase of 1% in energy consumption is associated with an increase of 0.88% in CO₂ emissions. To promote the emergence of sustainable development and a low-carbon economy, this article proposed policy recommendations addressing the reduction of emissions and the promotion of ecologically responsible and sustainable tourism while boosting the utilization of renewable energy technologies.