The effects of air transportation, energy, ICT and FDI on economic growth in the industry 4.0 era: Evidence from the United States

Effects of ICT agglomeration on carbon emission reduction: New evidence from the Yangtze River Economic Belt

It is unidentified whether information communication technology (ICT) agglomeration can contribute to carbon reduction and to what extent it plays a role in energy conservation and emission reduction, and further exploration is urgently needed. Based on the panel data of 108 cities in the Yangtze River Economic Belt from 2008 to 2019, the spatial panel Durbin model and intermediary effect model are employed to explore the effect of ICT agglomeration on carbon emissions and its pathways. It can be indicated from the results as below. (1) The local ICT agglomeration can reduce carbon emissions, but an increase in the level of ICT agglomeration in surrounding cities will increase local carbon emissions. (2) ICT agglomeration can reduce carbon emissions through reducing energy intensity and capital mismatch. (3) The effect of ICT agglomeration on carbon emissions is heterogeneous. ICT agglomeration can suppress carbon emissions in the middle and lower reaches of the Yangtze River, while it will increase carbon emissions in the upper reaches. ICT agglomeration increases carbon emissions in old industrial cities, reduces carbon emissions in non-old industrial cities, and has a more significant emission reduction effect in non-resource-based cities. We suggest promoting the formation of a coordinated linkage mechanism for ICT industry development and carbon emission reduction policies among regions, and implement differentiated ICT development strategies according to different industrial structure types.

Forecasting the transportation energy demand with the help of optimization artificial neural network using an improved red fox optimizer (IRFO)

Transportation energy demand has a significant impact on worldwide energy consumption and greenhouse gas emissions. Accurate transportation energy demand predictions can help policymakers develop and implement successful energy policies and strategies. In this study, a novel approach to predict transportation energy demand using the Artificial Neural Network (ANN) based on the Improved Red Fox Optimizer (IRFO) has been suggested. The proposed method utilizes the ANN model to solve the complex nonlinear relationships between transportation energy demand and its effective parameters including Gross Domestic Product (GDP), population, and vehicle numbers. Also, the IRFO algorithm was utilized to modify the ANN model's parameters to improve the prediction accuracy. The experimental findings demonstrate the ANN-IRFO model performs better than the other method in terms of accuracy and effectiveness. It predicts the growth of GDP, population, and vehicles number by 5.5 %, 4.8 %, and 4.2 %, respectively. The findings demonstrate that the suggested method can provide accurate forecasts for transportation energy demand, which can help decision-makers to make informed decisions and policies regarding energy management and sustainability.

Exposing the environmental impacts of air transportation on the ecological system: empirical evidence from APEC countries

In the trend of globalization, economic and social benefits of air transportation (AIR) are not indisputable. However, AIR's environmental impacts are still a controversial issue. While previous studies had shown that air transportation contributed to air pollution by emitting CO2, lack of studies consider the effects of air transportation on ecological system. Therefore, this study investigates the relationship between air transportation and ecological footprint as well as CO2 emissions in the case of APEC countries, which is leading in the growth rate of air transport activities. Applying regression with Driscoll-Kraay standard errors for a data set from 1992 to 2015, our research provides evidence that: (i) air transportation increases CO2 emissions but this impact is negligible; (ii) air transportation contributes significantly in reducing ecological footprint of APEC countries; and (iii) globalization reduces both CO2 emissions and ecological footprint. In addition, Dumitrescu-Hurlin causality test helps to confirm the bidirectional causality relationship between air transportation and ecological footprint. Meanwhile, unidirectional causality runs from air transportation to carbon emissions. Based on these conclusions, some policy suggestions are given for APEC countries.

Can economic growth and carbon emissions reduction be owned: evidence from the convergence of digital services and manufacturing in China

Under the background of the deep convergence of China's digital services and manufacturing, it is of great significance to investigate the effects of the convergence of digital services and manufacturing on economic growth and carbon emissions reduction to the application of digital technology in the whole world. This paper constructs a simultaneous equation model and uses three-stage least squares to estimate the effect and mechanism of industrial convergence on economic growth and carbon emissions. The results show that (i) industrial convergence improves the change of total factor productivity (TFP) and the change of technical efficiency, and the reduction of carbon emissions is the main factor driving the growth of TFP and technical efficiency; (ii) industrial convergence and carbon emissions show a significant U-shaped relationship; (iii) the heterogeneity analysis shows that the convergence of capital-intensive, technology-intensive and labor-intensive manufacturing with digital services will help to improve the growth of TFP, it can inhibit carbon emissions first and then promote it. Therefore, the government should take targeted measures to promote industrial convergence of digital services and manufacturing according to the economic development and industry characteristics, so as to give full play to its positive role in economic growth and emissions reduction.

Impact of renewable energy on economic growth? Novel evidence from developing countries through MMQR estimations

This study aims to examine the association between economic growth and energy consumption (renewable and nonrenewable). The data was collected from 80 developing countries comprising countries from all income over the 1990 to 2020 period. On methodological aspects, this study identifies the diverse impact of variables at different quantiles through novel methods of movement quantile regression (MMQR) approach and long-run coefficient estimations through fully modified ordinary least squares, fixed effects ordinary least squares, and dynamic ordinary least squares. According to the primary findings, the growth hypothesis exists in developing countries as both nonrenewable energy and renewable energy impact economic growth positively in MMQR estimation (for renewable energy at all quintiles and nonrenewable energy at lower quantiles), whereas the feedback hypothesis exists in (Dumitrescu and Hurlin Econ Model 29(4):1450-1460, 2012) Granger causality approach. The findings exposed that the economic renewable and non-renewable energy consumption has a positive impact on economic growth in developing countries. Based on the results, we recommend that developing countries prioritize investments in renewable energy for their production and expansion. Moreover, the provision of tax exemptions, subsidies, and feed-in tariffs are the right policy options towards the encouragement of the renewable energy sector and ultimately for the growth of the developing countries.

A dynamic analysis of the impact of FDI, on economic growth and carbon emission, evidence from China, India and Singapore

This study dynamically examines the impact of foreign direct investment and other explanatory variables on economic growth and carbon emissions, and tests the validity of pollution haven hypothesis (PHH) and environmental Kuznets curve (EKC) hypothesis in China, India, and Singapore from 1980 to 2020. The results of Westerlund's (Oxford Bulletin of Economics and Statistics, 69(6):709-748, 2007) panel cointegration test illustrate long-run equilibrium relationships among the proposed set of panel variables in the model. The estimated parameters of the AMG, CCEMG, and MG estimators in each of the specified models show that renewable and non-renewable energy consumption, foreign direct investment, and capital accumulation all have significant and progressive effects on economic growth. However, the labor force is insignificant and carbon emissions have a significant negative impact on economic growth. Non-renewable energy consumption significantly stimulates and renewable energy consumption significantly reduces carbon emissions. Moreover, the moderating role of non-renewable energy in the impact of foreign direct investment on carbon emissions is significantly positive, thus validating the PHH. The moderating role of renewable energy consumption in the impact of foreign direct investment on carbon emissions is significantly negative. The study's analysis also clearly validated the inverted U-shaped EKC hypothesis in China, India, and Singapore. Policymakers in emerging economies must prioritize the maturity of renewable energy, which not only increases productivity but also protects the environment from damage by reducing carbon dioxide emissions. The governments of China, India, and Singapore should initiate direct foreign inflows based on advanced and clean technologies to avoid environmental degradation and drive higher growth in these economies.

Shared prosperity, energy-saving, and emission-reduction: Can ICT capital achieve a "win-win-win" situation?

The continuous innovation of information and communication technology (ICT) provides new opportunities for the synergistic development of shared prosperity, energy-saving, and emission-reduction. Based on Chinese provincial data from 2000 to 2019, we analyzed the impact of income inequality on energy consumption and carbon emissions from both theoretical and empirical perspectives, focusing on the impact mechanism, moderating effect, and threshold effect of ICT capital on the relationship between income inequality and energy consumption and carbon emissions. The study finds that income inequality increases energy consumption and carbon emissions, whereas regardless of whether it is hardware, software, or communication capital, ICT capital effectively mitigates the growth of energy consumption and carbon emissions caused by income inequality, with a significant inhibitory effect. Furthermore, ICT capital has a stronger moderating effect on energy consumption and carbon emissions in urban and developed eastern region. Notably, the effect of income inequality on the growth of energy consumption and carbon emissions diminishes non-linearly with increasing ICT capital. This study confirms that an increase in ICT capital contributes to the "win-win-win" situation of shared prosperity, energy-saving, and emission-reduction, providing useful empirical guidance for China and similar countries to fully utilize ICT capital in the digital economy.

The dynamic nexus between air transport, technological innovation, FDI, and economic growth: evidence from BRICS-MT countries

This study examines the endogenous growth theory for technological innovation and economic growth with the role of foreign direct investment (FDI) and air transport freight in seven emerging BRICS-MT economies. In the existing literature, there is no significant empirical evidence on the dynamic relationship among technological innovation, air transport freight, FDI, and economic growth in BRICS-MT countries. Thus, the current study contributes to the growing literature regarding the role of technological Innovation, air transport, and FDI on economic growth. To this end, we explore the dynamic nexus between technological innovation, air transport, FDI, and economic growth in 7 selected emerging BRICS-MT countries, including Brazil, Russia, India, China, South Africa, Mexico, and Turkey. This study covers the most recent updated period for panel data from 2000 to 2019. We applied panel cointegration, dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS), and Granger causality tests to draw empirical inferences. The Pedroni panel and Kao residual cointegration tests confirm the long-run relationships among the variables. The DOLS results indicate that air transport freight, technological innovation, and FDI significantly positively impact economic growth. This study's findings confirmed the endogenous growth model in BRICS-MT countries. Furthermore, the Granger causality test results show the feedback effect of FDI on economic growth. The outcomes of this study also show the unidirectional causal relationship between air transport freight and economic growth. Moreover, the results provide support to economic policymakers in their decision-making. These results fill the gaps that assist policymakers of BRICS-MT countries in removing barriers to air transport freight, technological innovation, and foreign direct investment, thereby achieving sustainable economic development.

Haze pollution reduction in Chinese cities: Has digital financial development played a role?

Based on the exogenous shock of digital financial development in China in 2013, a difference-in-differences (DID) model is set up in this paper to investigate the causal relationship between digital financial development and haze pollution reduction. The finding of the paper is that a one standard deviation increase in digital finance after 2013 decreases the PM2.5 concentrations by 0.2708 standard deviations. After a number of robustness checks, like placebo tests, instrumental variable (IV) estimations, eliminating disruptive policies, and using alternative specifications, this causal effect is not challenged. In addition, this paper explores three potential mechanisms of digital finance to reduce haze pollution: technological innovation, industrial upgrading, and green development. Moreover, the heterogeneous effects signify that the usage depth of digital finance works best in haze pollution reduction. Digital finance has more positive effects in cities in the north and those with superior Internet infrastructure and higher levels of traditional financial development. However, the quantile regression estimates suggest that for cities with light or very serious haze pollution, the positive impact of digital finance is limited. These findings supplement the research field on the environmental benefits of digital finance, which provides insights for better public policies about digital financial development to achieve haze pollution reduction.

Examining the effect of information and communication technology, innovations, and renewable energy consumption on CO2 emission: evidence from BRICS countries

The increasing use of information and communication technology (ICT) in this digital era and its interlinkage with other economic and environmental factors have gotten considerable attention from researchers. ICT tools are considered very important in economic activities such as international trade, the financial sector, and foreign direct investment. ICT is also interlinked with innovation and energy consumption. However, ICT with these activities influences ecological footprint, especially in emerging economies such as BRICS (Brazil, Russia, India, China, and South Africa) countries. Therefore, this topic has got considerable attention from researchers and policy makers on the impact of ICT and economic growth activities on environmental quality. Consequently, this study investigates the impact of information and communication technology, renewable energy consumption and innovation on carbon dioxide emission in BRICS countries from 1990 to 2019 using cointegration, generalized least square, and panel corrected standard errors models. The findings show that two ICT indicators, mobile cellular subscription and fixed broadband subscription, negatively affect carbon emission along with economic growth and financial development. Innovation and renewable energy consumption also significantly reduce emission in presence of ICT indicators, while trade openness and fixed telephone subscriptions increase it. In the case of the ICT index model, all variables are positively associated with carbon emission except renewable energy consumption, however, the square and interaction term of all indicators significantly reduce carbon emission and evidence the environmental Kuznets curve hypothesis except trade openness. ICT growth should be considered in the energy sector, innovation, and financial development to enhance environmental quality. The findings of the study have considerable policy implications for the sample countries.

Analysis of the Impact of External Debt on Health in an Emerging Asian Economy: Does FDI Matter?

In this study, our main objective is to find the impact of FDI and external debt on health outcomes in emerging Asian economies from 1991 to 2019. To that end, we have collected data for seven economies: Bangladesh, Malaysia, Philippines, Thailand, Sri Lanka, China, and India. We have relied on the panel ARDL (PARDL) method for empirical analysis. The study's findings confirmed that the debt has increased infant mortality and decreased life expectancy in emerging Asian economies in the long run. On the other side, the FDI causes infant mortality to fall and life expectancy to rise in the long run in emerging Asian economies. Similarly, the health expenditures also reduced the infant mortality rate, though the impact is insignificant, and improved the life expectancy in emerging Asian economies. The causal analysis confirmed the two-way causality between health expenditure, infant mortality, and health expenditure and debt.

Comparative Study in Software and Healthcare Industries between South Korea and US Based on Economic Input–Output Analysis

In the modern era, software technology is being used not only as a core technology for manufacturing but also in various industries, such as telemedicine services, and the importance of the healthcare industry is being emphasized due to the demand for improved quality of life from the increase in the general level of earnings. However, if the industry emits a lot of carbon dioxide (CO2), it is questionable whether it is a sustainable industry. This study aimed to analyze the economic linkage effect of software and healthcare industries in South Korea and the United States by applying input–output analysis and examine whether these industries are sustainable in terms of CO2 emissions. The input–output tables and CO2 emissions from 2005 to 2015 were used for analysis from OECD. As a result of the analysis, CO2 emissions from the software and healthcare industries were less than 1% in both South Korea and the United States, suggesting that these industries are well-suited for low-carbon development in these countries. The forward and backward linkage effects of the software industry are different between South Korea and the United States. Specifically, the backward linkage effect of the software industry is large in South Korea, and the forward linkage effect is large in the United States. The forward linkage effect of the healthcare industry is different in the two countries, but the backward linkage effect is not. It means that there are differences in the industrial structure of the two countries. The software and healthcare industries need to devise strategies to drive production in other industries while maintaining current low carbon emission levels.

The Development and Issues of Energy-ICT: A Review of Literature with Economic and Managerial Viewpoints

This paper reviews the economic and managerial literature on the relationship between energy-ICT and the development of the green energy economy. It is summarized that there are four lines of existing literature on energy-ICT: cost and benefit analysis, fair competition issues, cybersecurity issues, and promotion policy issues. Even though ICT is energy-consuming, most of the existing empirical studies support the idea that energy-ICT has net positive effects on energy savings, energy efficiency improvement, emission reduction, and economic growth at both enterprise and economy-wide levels. Energy-ICT equips the platform operator with higher bargaining power, such that a governance mechanism to assure the fair access right of each entitled participant is required. A smarter energy-ICT network also becomes riskier, and hence the cybersecurity protection is more important than before. Future research and development opportunities remain on these issues of the fair competition, cybersecurity, and promotion policy of energy-ICT.

The relevance of economic freedom for energy, environment, and economic growth in Asia-Pacific region

This paper investigates the relationship between energy intensity, economic freedom, and carbon emissions. The problem of environmental degradation, economic freedom, and energy use is mainly studied for developed economies; however, this study has selected forty-one Asia-Pacific economies representing all income groups of the World Bank's classification. In the presence of income, economic freedom plays a dual role for environment and energy: direct impact and as moderating factor impact. Here, we empirically test for a panel of 41 Asia-Pacific countries using the autoregressive distributed lag approach. Our findings suggest, although there is no bidirectional causality between all the variables, the long-run estimates of economic freedom for economy and environment are positive. The results imply for substantial structural reforms with a favorable economic and regulatory environment for Asia-Pacific countries. Our empirical analysis also implies that GDP growth levels for Asia-Pacific countries are becoming increasingly dependent on economic freedom and energy intensity. The results underline the critical role played directly and indirectly by economic freedom in creating an atmosphere that promotes research and development activities to help reduce energy intensity shortly to solve environmental problems.

The impact of urban land misallocation on inclusive green growth efficiency: evidence from China

Inclusive green growth (IGG), as a new way to attain sustainable development, aims to achieve comprehensive and coordinated economic, social, and environmental development. How to define IGG and explore its driving factors is key to realizing IGG. This study takes China as an example, using panel data from 30 provinces in Mainland China from 2009 to 2018 for research. The epsilon-based measure (EBM) model and Global Malmquist-Luenberger (GML) index are used to evaluate China's IGG, and a spatial panel regression model of the impact of urban land resource misallocation on IGG is established. The research found that (1) China's IGG level from 2009 to 2018 displayed an upward trend, and combined with exploratory spatial data analysis (ESDA), it was found that IGG has an obvious spatial correlation; (2) the regression model shows that the misallocation of land resources hinders the improvement of IGG in China; and (3) the decomposition of spatial spillover effects demonstrates that the misallocation of land resources has negative externalities, which will also have adverse effects on neighboring areas.

The Use of Prospect Theory for Energy Sustainable Industry 4.0

Industry 4.0 challenges facilities entrepreneurs to be competitive in the market in terms of energy by rational decision making. The goal of the paper is aimed at introducing Prospect Theory (PT) in Industry 4.0 for making decisions in order to select an optimal energy technology. To reach this goal, an approach for decision making on energy investment has been developed. In this paper, the authors have also provided a new opportunity to apply the new decision making method for strengthening Industry 4.0 by addressing energy concerns based on which rational decisions have been made. The study uses a fuzzy analytical hierarchy process for weighting the evaluation sub-criteria of energy technologies and a modified PT for making decisions related to the selection of one of the investigated technologies. The results show that it is possible to implement PT in Industry 4.0 via a decision making model for energy sustainability. Decision probability was achieved using a behavioral approach akin to Cumulative Prospect Theory (CPT) for the considered technology options. More specifically, the probability has created the same threshold-based decision possibilities. The authors used the case study method based on a company located in North America which produces hardwood lumber. The company uses a heating system containing natural gas-fired boilers. This study has also contributed to the literature on energy sustainable Industry 4.0 by demonstrating a new phenomenon/paradigm for energy sustainability-based Industry 4.0 through using PT. In this context, the main motivation of writing the article has been to promote energy sustainability via complex mechanisms and systems that involve interrelated functions.

Decoupling and decomposition analysis of investments and CO2 emissions in information and communication technology sector

Organization of Economic Cooperation and Development (OECD) economies are facing a substantial increase in the information and communication technology (ICT) investments in the context of rapid spread of the Coronavirus Disease-2019 (COVID-2019) pandemic and constraints of emissions reduction. However, the mechanism of the impact of ICT investments on carbon dioxide is still unclear. Therefore, by employing the decoupling-factor model and Generalized Divisia Index Method, we explore the decoupling states of ICT investments and emission intensity, and the driving factors of ICT investments' scale, intensity, structure, and efficiency effects on carbon emissions in 20 OECD economies between 2000 and 2018. The results indicate that the number of economies with an ideal state of strong decoupling rose to nine between 2009 and 2018 compared to no economies between 2000 and 2009. The emission intensity of ICT investments contributes to a significant increase of carbon emissions, and the structure and efficiency of ICT investments always restrain the growth of carbon emissions. Significant emissions changes caused by the driving factors are shown in many economies before and after the crisis, reflecting the differences in the strategic choices of ICT investments and the impact on emissions due to the crisis such as the COVID-2019 pandemic. And policy implications for energy and carbon dioxide mitigation strategies in the post-COVID-2019 era are also provided.

The carbon dioxide neutralizing effect of energy innovation on international tourism in EU-5 countries under the prism of the EKC hypothesis

Mitigation of carbon dioxide emissions has become an utmost important global agenda, keeping into consideration the associated environmental hardships. As a result, it is important to unearth the factors which can neutralize carbon emissions to transform the world economy into a low-carbon one. Against this backdrop, this study explores the carbon dioxide neutralizing effects of economic growth, international tourism, clean energy promotion, and technological innovation in the context of five European Union (EU-5) nations during the 1990-2015 period. This study's main contribution is in terms of its approach to test the interaction effect between foreign direct investment (FDI) inflows and energy innovation on carbon dioxide emissions. The econometric analysis chronologically involves the employment of unit root, cointegration, causality, and regression methods. Overall, the findings support the inverted-U-shaped economic growth-carbon dioxide emissions nexus to verify the Environmental Kuznets Curve (EKC) hypothesis. Besides, the Pollution Haven Hypothesis in the context of the selected panel is also verified as higher FDI inflows are seen to boost the carbon dioxide emission levels. The results also confirm that energy innovation moderates the harmful effect of air transport (a proxy for international tourism) on carbon dioxide emissions during the developing stage of the tourism industry. On the other hand, renewable energy promotion is found to curb carbon dioxide emissions. These findings suggest that the European governments need to enhance investments in their respective renewable energy sectors and simultaneously ensure the development of clean industries, which can collectively help these nations become carbon-neutral in the future.

Implications of Social Isolation in Combating COVID-19 Outbreak in Kingdom of Saudi Arabia: Its Consequences on the Carbon Emissions Reduction

The aftermath of the COVID-19 pandemic has two striking impacts on the economy of the Kingdom of Saudi Arabia. First, the economic contraction of business and economic activities. Second, the effect of oil prices dropping as energy demand decreases in the international market. This study seeks to underpin the linkage between GDP growth, oil price, foreign direct investment (FDI), air transport, social globalization and carbon dioxide emission by applying time-series econometrics techniques of the following: fully modified ordinary least squares, dynamic ordinary least squares and canonical tests. The results of the Johansen cointegration test and empirical analysis trace a long-run equilibrium relationship between the highlighted variables. Our study shows that a 1% increase in FDI attraction increases economic growth by 0.004%; similarly, air transport and oil rent from KSA increased economic growth by 0.547% and 0.005%, respectively. These outcomes are indicative of the GDP growth ambition of the KSA economy in order to intensify FDI attraction and the air transportation sector. However, we also observe that increases in CO2 emission increase GDP growth. Thus, this suggests that the economic growth in KSA is not green, indicating the need for green economic growth pursuit targets.

Determinants of consumption-based carbon emissions in Chile: an application of non-linear ARDL

In recent years, a growing number of scholars have employed various proxies of environmental degradation to understand the reasons behind rising environmental degradation. However, very few studies have considered consumption-based carbon emissions, even though a clear understanding of the impact of consumption patterns is essential for redirecting the pattern to more sustainable consumption. Thus, this study takes a step forward by using consumption-based carbon emissions (CCO2) as a proxy of environmental degradation using the novel non-linear ARDL technique for Chilefrom 1990 to 2018. To the best understanding of the investigators, no prior studies have investigated the drivers of consumption-based carbon emissions utilizing non-linear ARDL. The study employed ADF and KSS (non-linear) tests to check the data series' stationary level. Additionally, the symmetric and asymmetric ARDL approaches are utilized to explore cointegration and long-run linkages. According to the results, there is no symmetric cointegration among the variables; however, the empirical estimates reveal a long-run asymmetric connection between the indicators and CCO2 emissions. The novel results from the asymmetric ARDL indicate that negative and positive changes in economic growth deteriorate the quality of the environment. Interestingly, a reduction in economic growth makes a more dominant contribution to environmental degradation. Moreover, positive changes in renewable energy usage improve the quality of Chile's environment, inferring that the country can achieve a reduction in environmental degradation by boosting renewable energy consumption. Surprisingly, the study found that technological innovation is ineffective in reducing consumption-based carbon emissions, which implies that Chile's technological innovation is not directed towards manufacturing green technology. Finally, the policy implications are discussed with respect to reducing consumption-based carbon emissions.

Environmental treaties' impact on the environment in resource-rich and non-resource-rich countries

This paper examines the impact of environmental treaties on the environment across 74 countries: 50 resource-rich and 24 non-resource-rich countries. Using data spanning over 35 years, we find a negative and significant association between environmental treaties and environmental quality in resource-rich countries. On the contrary, we find environmental treaties positively and significantly affect the environment in non-resource-rich countries. Our results suggest that the environmental treaties signed by resource-rich countries may lead them to achieve sustainable development growth by 2030. Therefore, our results extend the environment literature and inform policymakers of the need to pay attention to the effects of signing environmental treaties on environmental protection.

Do spatial spillovers matter? Estimating the impact of tourism development on CO2 emissions

Most of the extant literature on the environmental impact of tourism has ignored the possible spatial interaction effects across countries. This study thus aims to re-investigate the impact of tourism development on CO2 emissions by taking spatial dependence into account. To that end, the spatial econometric techniques, which can address the issue of potential spatial dependence among countries, are adopted. Using a panel data of 95 countries over 2000-2014, the results confirm that there exists a significant spatial dependence among national CO2 emissions. Besides, the results provide confirmation that tourism development exerts a significant enhancing influence on CO2 emissions. Interestingly, we find that the promoting effect of tourism development on CO2 emissions primarily comes from the spillover effect rather than the direct effect, after considering spatial dependence. Finally, in light of the research findings, some policy implications are put forward to improve environmental quality.