Effects of tourism, financial development, and renewable energy on environmental performance in EU-28: does institutional quality matter?

Musa M. S., Jelilov G., Iorember P. T., USMAN O.

Environmental Science and Pollution Research, cilt.28, sa.38, ss.53328-53339, 2021 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 28 Sayı: 38
  • Basım Tarihi: 2021
  • Doi Numarası: 10.1007/s11356-021-14450-z
  • Dergi Adı: Environmental Science and Pollution Research
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, IBZ Online, ABI/INFORM, Aerospace Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, EMBASE, Environment Index, Geobase, MEDLINE, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.53328-53339
  • Anahtar Kelimeler: Environmental performance, Financialization, Institutional quality, Renewable energy, Tourism development
  • İstanbul Ticaret Üniversitesi Adresli: Evet

Özet

Institutional quality largely influences the ways in which economic agents align their production and operational behaviors towards expanding the share of renewable energy in the total energy mix and enhancing environmental performance. This study therefore explores the panel data for the EU-28 countries to assess the dynamic effects of institutional quality, tourism development, financial development, and renewable energy on environmental performance over the period 2002 to 2014. Using a two-step dynamic system generalized method of moments (GMM), the empirical results broadly suggest that institutional quality can be explored to dampen the potential negative effects of tourism and economic growth on environmental performance. In addition, financial development and renewable energy are positively related to environmental performance. This suggests that financial stability and energy consumption transition to renewable energy are necessary requirements to improve environmental performance. The policy implication for this study is that strengthening of institutional quality, financial stability, and adjusting to alternative and clean energy systems are the surest ways to achieve a cleaner and sustainable environment in the EU region.