Effects of Tourist Arrival on Energy, Pollution, Production, and Investment: A Case Study of Taiwan

Abstract

This chapter strives to evaluate the impact of tourist arrival on energy consumption, air pollution, gross domestic product (GDP), and foreign direct investment to suggest strategies for further tourism development. Relevant data from Taiwan are analyzed, entailing tourist arrivals, GDP, carbon dioxide emissions, energy consumption, and capital investment. It tests four hypotheses using the Augmented Dickey-Fuller single root test, the Autoregressive Distributed Lag model, and time series econometrics of Granger causality. This study finds that tourist arrival is positively related to energy consumption and GDP, whereas it negatively relates to carbon dioxide emission and capital investment. In consideration of a negative relationship between tourist arrival and direct investment, this study suggests devising timely research agendas on carrying capacity and service quality in the mind of international tourists to see if additional investment in tourism infrastructures is needed.

Citation

Liu, W.-Y. and Tsao, C. (2023), "Effects of Tourist Arrival on Energy, Pollution, Production, and Investment: A Case Study of Taiwan", Chen, J.S. (Ed.) Advances in Hospitality and Leisure (Advances in Hospitality and Leisure, Vol. 18), Emerald Publishing Limited, Leeds, pp. 99-112. https://doi.org/10.1108/S1745-354220220000018006