Revisiting the Environmental Kuznets Curve Hypothesis in the MENA Region: The Roles of International Tourist Arrivals, Energy Consumption and Trade Openness

This paper employed advanced panel methods to examine the effects of international tourist arrivals on CO₂ emissions in the Middle East and North Africa (MENA) region over the period of 1995–2018. To analyze the predictive power of tourist arrivals for CO₂ emissions, the panel Granger non-causality test was employed. Employing the common correlated effects mean group estimator showed that tourist arrival reduces CO₂ emissions, while energy consumption and trade openness are the main contributors of CO₂ emissions. Results also showed that although first-generation estimators confirmed the Environmental Kuznets Curve (EKC) hypothesis, according to the CCE-MG estimator, an inverted U-shaped association between economic progress and CO₂ emissions does not exist. Furthermore, the null hypothesis of non-Granger causality from tourist arrivals to CO₂ emissions was rejected. The findings suggest taking a more sustainable approach to tourism development and energy conservation in the long run.